A Bond is a document with which one party promises to pay another within a specified amount of time. The term "demand" means that the principal plus any interest is due on demand by the bondholder rather than on a specific date. Bonds are used for many things, including borrowing money or guaranteeing payment of money. A bond can be given to secure performance of particular obligations, including the payment of money, or for purposes of indemnification. The validity of a "private" bond, payable upon demand, is determined by the same principles applicable to contracts generally. The purpose of the bond must not be contrary to public policy; it must be supported by a valuable consideration; and there must be a clear designation of the obligor and the obligee. A bond procured through fraud or duress may be unenforceable, but mistake on the part of the obligor as to the contents of a bond, or its legal effect, is not a defense to enforcement of the bond.
Contractors, suppliers, and others that work in the construction industry use this form to file a claim against the bond on a public project. We make it easy to get a contract performance bond.Just click here to get our New York Performance Application. And continues to be, in the opinion of a nationally recognized bond counsel, consistent with the requirements of the Rule. Bond Law has been duly prepared and filed in the office of the. Said bond to be released upon compliance with the terms of this article. Road Construction Updates.