Commentary

1.3 Double or conditional bonds

BONDS vol 4(1)
| Commentary

1.3 Double or conditional bonds

| Commentary

1.3 Double or conditional bonds

The ordinary form of bond came to be one accompanied by a condition in the nature of a defeasance, the performance of the condition generally being secured by a penalty. This form of bond is called a double or conditional bond1. It consists of two parts, the obligation and following this, the condition. The obligation of a conditional bond, as in the case of a simple bond, simply binds the obligor to pay a sum of money, which may be a ‘penalty’ or may be ‘liquidated damages’2. It does not refer to the condition. The

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