382. Bonds.

A bond is a document made by deed whereby a third party guarantees the fulfilment by the contractor of the contract1. In contracts for construction work, bonds will often support payment or performance obligations2. Most commonly, a performance bond is given whereby the bondsman promises to pay up to the amount of the bond if the contractor fails to perform his contract. It is a matter of construction3 whether this amounts to a default4 or 'on demand' bond5. In all cases such bonds are surety contracts. Thus, unless a bond expressly allows for variations in the terms of the