| Commentary

43 Conditional bonds

| Commentary

43 Conditional bonds

A bond is an undertaking by deed to pay a sum of money to another person, usually on the fulfilment of one or more specified conditions1. Most contracts of suretyship required to be used ancillary to construction contracts are in the form of a bond described as a ‘performance bond’ or ‘performance guarantee’. Such a bond is a particularly stringent contract of indemnity whereby a person, usually a bank, undertakes to pay a specified amount of money to a third party on the occurrence of a stated event, usually the non-fulfilment of a contractual obligation by the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial