What category of bonds guarantees the fulfillment of contractual obligations?

The correct answer is rooted in the definition of contract bonds. Contract bonds specifically ensure that a contractor will fulfill the obligations of a contract. These bonds are a subset of surety bonds and are essential in construction and other contractual agreements, as they provide a financial guarantee that the terms of the contract will be met.

The primary function of contract bonds is to protect the obligee (the party requiring the bond) in the event that the principal (the party obtaining the bond) fails to meet their responsibilities. This can include completing a project on time, adhering to specifications, and ensuring that the work meets applicable quality standards.

While performance bonds also serve a similar purpose by guaranteeing that a contractor will perform the work as specified in the contract, they are considered a type of contract bond. Therefore, the broader category that encompasses the fulfillment of contractual obligations is contract bonds, making this the most appropriate choice.

Surety bonds encompass various types of bonds used in the context of performance and other contractual assurances, but the specific term that directly addresses the guarantee of fulfilling contractual obligations is contract bonds.