Which party promises to perform in a suretyship arrangement?

In a suretyship arrangement, the principal is the party who promises to perform a specific obligation or duty to a third party, known as the obligee. The principal is the one who undertakes the responsibility for completing a contract, such as fulfilling the terms of a construction contract or any other legally binding agreement.

In this context, the surety is the party that guarantees the performance of the principal. The surety provides assurance to the obligee that if the principal fails to meet their obligations, the surety will cover the loss. The indemnitor is a party that provides financial protection, potentially compensating the surety for any losses incurred when the principal defaults. The obligee is simply the entity that benefits from the promise made by the principal. Therefore, the principal is the correct answer because they are the one making the commitment to perform as per the suretyship agreement.