Final answer:
In bonding, the party required to execute a promise or duty is known as the Obligor, who is bound to an agreement with the Obligee. The Principal is related to the bond, and the Insurance Company may underwrite it.
Step-by-step explanation:
In bonding, the party who promises to do or NOT to do a specific action is known as the Obligor. The obligor is the individual or entity that is contractually bound to perform a duty or fulfill a promise. Conversely, the Obligee is the party to whom the duty or promise is owed, and this can be in various forms of contractual agreements, including surety bonds, service contracts, or other legal binding agreements.
The Principal can be a party related to the bond, often the one who purchases the bond or the party whose performance is guaranteed, while the Insurance Company may provide the surety bond that guarantees the obligor's performance but is not the one who makes the promises in the contract.