Salient features of a Bond

– A Bond is a form of contract.

– A Bond is never oral, its always in writing.

– A Bond has an obligation and the condition attached to an obligation.

– Obligation and its related conditions always rest with one person.

– If an obligation is not performed then the condition attached to it is executed.

– A Bond can be considered as a One sided contract (though there is no such legal term as one sided contract).

– A Bond will always be expressed in money terms, it is never in kind.

– A debenture is also sometimes called as Bond.

Indemnity is for indefinite period e.g. Defence agreements but bonds are for definite period.

– Indemnity arises only after the event happens. Bonds are void if conditions are fulfilled.

[This blog is captured from “Managing Commercial contracts” class notes (by Prof S. Shankar . Some information referred from Wikipedia/other listed sites.]

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