This bond is created for the buyer who again sells the product to the customer for a consideration. This bond has been created between the buyer and the department of agriculture. In this case the seller has to obtain a license from the department of agriculture to market his product. The purpose for establishing this act is to protect the agriculture producer from the unnecessary risk. This bond also ensures the producer against loss accrued from the sale of the product and guarantees the customer regarding the adequate and available delivery of the product in the market.