A term used in surety bonds to refer to the individual or firm that is to benefit from the bond’s protection. A performance bond, for example, provides the obligee property owner with recourse if the bonded contractor, the principal, fails to perform.
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Broadly, anyone in whose favor an obligation runs. Frequently used in surety bonds, this refers to the person, firm or corporation protected by the bond.
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The person in favour of whom some obligation is contracted, whether such obligation be to pay money, or to do, or not do something, the party to whom a bond is given.
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UK: The person or firm protected by a bond. In a performance bond it is the property developer.