Bond - A contract by speciality to pay a certain sum of money; being a deed or instrument under seal, by which the maker or obligator promises, and thereto binds himself, his heirs, executors, and administrators, to pay a designated sum of money to another; usually a clause to the effect that upon performance of a certain condition (as to pay another and smaller sum) the obligation shall be void.
The word "bond" shall embrace every written undertaking for the payment of money or acknowledgement of being bound for money, conditioned to be void on the performance of any duty, or the occurrence of anything therein expressed, and subscribed and delivered by the party making it, to take effect as his obligation, whether it be sealed or unsealed; and, when a bond is required by law, an undertaking in writing without seal shall be sufficient.
The word "bond" has with us a definite legal signification. it has a clause, with a sum fixed as a penalty, binding the parties to pay the same, conditioned, however that the payment of the penalty may be avoided by the performance by some one or more of the parties of certain acts.
Bonds are either single (simple) or double (conditional). A single bond is one in which the obligor binds himself, his heirs, etc., to pay a certain sum of money to another person at a specified day. A double (or conditional) bond is one to which a condition is added that if the obligor does or forbears from doing some act the obligation shall be void. Formerly such a condition was sometimes contained in a separate instrument, and was then called a "defeasance."
The term is also used to denote debentures or certificates of indebtedness issued by public and private corporations, governments, and municipalities, as security for the repayment of money loaned to them. Thus, "railway aid bonds" are bonds issued by municipal corporations to aid in the construction of railroads likely to benefit them, and exchanged for the company's stock.
IN OLD SCOTCH LAW: A bond-man; a slave.
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