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Law Dictionary Home Dictionary Definition bond

Bond [fr. binda, band, bunden, A. S., to bind], a written acknowledgement or binding of a debt under seal. See DEED. No technical form of words is necessary to constitute a bond; see Gerrard v. Clowes, (1892) 2 QB 11; Strickland v. Williams, (1899) 1 QB 382. The person giving the bond is called the obligor, and he to whom it is given the obligee. A bond is called single (simplex obligatio) when it is without a penalty, but there is generally a condition added, that, if the obligor does or forbears from some act, the obligation shall be void, or else shall remain in full force, and the bond is then called a double or conditional one; see Dav. Prec. Vol. V., pt. Ii., p. 268. When a bond contains a penalty, which is generally double the amount of the principal sum secured, only the sum actually owing, with interest, can be recovered, and in no case can this exceed the amount appearing on the face of the bond. See 8 & 9 Wm. 3, c. 11, s. 8; Re Dixon, (1900) 2 Ch 561. Although it is unnecessary to mention personal representatives or successors who are intended to be included in the benefit or burden of the obligation, see s. 80, (English) L.P. Act, 1925, it is advisable to name them if it is contemplated that they may perform the condition, see K. & E., 13th Edn. P. 277. The benefit passes to the survivors in the case of the death of any joint obligees, (English) L.P. Act, 1925, s. 81, and the receipt of the survivors is sufficient, s. 111, ibid., but joint obligees are, prima facie, tenants in common in equity for all other purposes. A bond conditioned either to do something which is malum in se or malum prohibitum, or to omit the doing of something which is a duty, or to encourage such crimes and omissions, is void. A bond may be valid in part and void in part, if such parts are separable. There are two kinds of post obit bonds: (1) Where the sum secured is greater than the sum borrowed, but to be payable only upon a contingency, such as the obligor-expectant surviving his ancestor. (2) Where the sum secured is greater than the sum borrowed, but it is to be paid on the death of a particular person, whether the obligor be then alive or not, the time of payment being contingent only. See EXPECTANT HEIRS; MONEY -- LENDERS; POST OBIT BOND; USURERS. Bonds to procure marriage (or marriage brokage bonds), or to restrain marriage, or for immoral considerations, such as future, but not past, cohabitation, and also in total restraint of trade, are void. As to forgery of a bond, see (English) Forgery Act, 1915, s. 2; and as to larceny thereof, see (English) Larceny Act,1916, ss. 1 and 46. The term 'bond' is also used to denote an acknowledgement of indebtedness for a loan obtained by a Government or company. Bonds contain provisions as to interest until repayment of the principal. 'Bonds to Bearer' pass by simple delivery and interest on the amount secured is collected by means of coupons attached to the bond, which are cashed at due date as warrants for the interest specified on each. Other bonds are registered, and interest is paid by the issue of warrants as in the case of ordinary shares. See also BEARER BONDS and DEBENTURES. Bonds are also executed to secure duty on dutiable goods to the Crown while in a merchant's or shipper's warehouse. See BONDED WAREHOUSE; BOTTOMRY BOND; LLYOD'S BOND. Includes any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be. [Limitation Act, 1963 (36 of 1963), s. 2 (d)] Includes--(a) any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, as the case may be; (b) any instrument attested by a witness and not payable to order or bearer, whereby a person obliges himself to pay money to another; and (c) any instrument to attested, whereby a person obliges himself to deliver grain or other agricultural produce to another. [Indian Stamp Act, 1899 (2 of 1899), s. 2 (5)] A bond for the purpose of the Stamp Act is not the same thing as a promissory note. The word 'bond' is not used in s. 2(f) in the special sense in which it has been defined in the Indian Stamp Act. It appears to have been used in its general sense that is a deed by which one person binds himself to pay a sum to another person, Jiwanlal Achariya v. Rameshvarlal Agarwalla, AIR 1967 SC 1118 (1121): (1967) 1 SCR 190. [Bihar Money-Lenders (Regula-tion of Transactions) Act, (7 of 1939), s. 2(f)] Bond, is a document made by deed whereby a third party guarantees the fulfilment by the contractor of the contract, Halsbury's Laws of England, Vol. 4(2), 4th Edn., Para 477, p. 383. The definition of bond in the Stamp Act or for that matter in the Limitation Act is not exhaustive as would appear from the word 'includes', with whose aid this word has been defined in both these enactments (Stamp Act and Limitation Act). The definition given in those Acts cannot be taken to apply generally to the term 'bond, as distinguished from mortgages, gifts and wills about which the statutes in question have specifically spoken about attestation. That so far as bond is concerned, it is section 72 of the Evidence Act which applies which has stated that an attested document not required by law to be attested may be proved as if it was unattested; Khuraijam Ongbi Thoibisanan Devi v. Akoijam Amubi Singh, AIR 1982 Gau 100. Means to secure payment by providing a bond e.g. at the creditor's insistence, Gabriel consolidated and bounded his various loans, to provide a bond for (a person) the company bounded its off-site workers, Black Law Dictionary, 7th Edn., p. 175. Bond, usually means formal written agreement by which a person undertakes to perform a certain act (as appear is court or fulfil the obligation of a contract) or abstain from performing an act (as committing a crime) with the condition that failure to perform or abstain will obligate the person or often a surety to pay a sum of money or will result in the forfeiture of money put up by the person or surety, Webster's Dictionary of Law, Indian Edn. (2005), p. 55. Bond includes any instrument whereby a person obliges himself to pay money to another, on condition that the obligation shall be void if a specified act is performed, or is not performed, Limitation Act, 1963, sec. 2(d).

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