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Bonds, Brokers, Commission Merchants

( Originally Published 1918 )



A Bond is an instrument in writing whereby one person binds himself (or several persons bind themselves) to another or others to pay a sum of money, to abide by an award, or to do some lawful act, or not to do some particular thing or things specified in the condition of the bond.

Names of Parties.—The person who gives the bond and so binds himself is called the obligor, the person receiving the bond is called the obligee.

Kinds of Bonds.—If there is no stipulation in the bond that the obligor shall suffer any penalty in case of nonperformance, the bond is called a simple one. But there generally is a condition added that if the obligor does some particular act, the obligation shall be void, or else shall remain in full force, as payment of rent, performance of covenant in a deed, or repayment of a principal sum of money borrowed of the obligee, with interest; which principal sum usually is one-half of the penal sum specified in the bond.

Seal Required: Bonds, at common law, must be under seal, the seal making proof of consideration unnecessary, because it imports a consideration.

Forfeiture.—In case of a failure to perform the condition, the obligee can recover only his principal, interest, and expenses, if the bond was given to secure the payment of money; and if given to secure the performance of a covenant, he can recover only reasonable damages for the breach.

Action On.—Bonds belong to the class of obligations known as specialties, and like other sealed instruments, are in force by statute in most of the states for twenty years, or during such time as the special statute of the state may provide.

Form of Simple Bond

Know All Men by These Presents, That I, William Jenkins, of the city of Dallas, State of Texas, am held and firmly bound unto James Stevens, of the city and State aforesaid, in the sum of Five Hundred Dollars, lawful money of the United States, to be paid to the said James Stevens, or his assigns ; to which payment, well and truly to be made on or before the — day of 19—, I bind myself, my heirs, executors, and administrators, firmly by these presents.

In Testimony Whereof, I, William Jenkins, have set my hand and seal to this instrument on the — day of —, in the year of our Lord one thousand nine hundred and —.

WILLIAM JENKINS. [SEAL]

Executed and delivered in presence of

WILLIAM RODGERS,

Louis Woods.

General Form of Bond, with Condition

Know All Men by These Presents, That I, John Taylor, of Lincoln, in the County of Logan, State of Illinois, am firmly bound unto Harvey Newman, of the place aforesaid, in the sum of One Thousand Dollars, to be paid to the said John Taylor, or his legal representatives; to which payment, to be made, I bind myself, my heirs, executors, and administrators firmly by these presents.

Sealed with my seal. Dated the — day of —, A. D. 19-.

The condition of the above obligation is such that, if the above bounden John Taylor, his heirs, executors, or administrators, shall promptly pay the sum of Five Hundred Dollars in two equal annual payments from the date hereof, with annual interest, then the above obligation to be of no effect; otherwise to be in full force and valid.

JOHN TAYLOR. [SEAL]

Signed, sealed and delivered in presence of

RICHARD LOW.

Know All Men by These Presents, That I, Chas. Greene, of Terre Haute, Vigo County, State of Indiana, am firmly bound to the Terre Haute Plow Manufacturing Company in the sum of Ten Thousand Dollars, to be paid to the said company, or their assigns, for which payment to be made, I bind myself and representatives firmly by these presents. Sealed with my seal. Dated this — day of —, 19-. The condition of the above bond is such that, if I, the said Chas. Greene, or my legal representatives, shall pay unto the Terre Haute Plow Manufacturing Company, or as-signs, Five Thousand Dollars in two equal payments, viz.: Two Thousand Five Hundred Dollars - -, 19-, and Two Thousand Five Hundred Dollars -- -, 19-, then the above to be void; otherwise to remain in full force and effect.

CHAS. GREENE. [SEAL]

Signed, sealed and delivered in presence of

FRED BROWN.

Bond of Indemnity

Know All Men by These Presents, That I, Phillip Barrows, of Richmond, Virginia, am held and firmly bound unto Warren Hazelteen, of the same place, in the sum of Two Thousand Dollars, to be paid to the said Warren Hazelteen, his executors, or administrators, for which payments, well and truly to be made, I do bind myself, my heirs, executors, and administrators firmly by these presents.

Sealed with my seal. Dated this — day of —, 19—.

Whereas, Warren Hazelteen is about to employ my nephew, Harry R. Hall, as cashier in his store, for the term of one year from - -, 19-.

Now, the condition of this obligation is such that if the said Harry R. Hall shall fully perform all the duties of his said employment, and promptly and correctly account for and pay over all the money or property of the said Warren Hazelteen which may come into his hands during its course, then this obligation shall be void; otherwise to remain in full force.

PHILLIP BARROWS. [SEAL]

Signed, sealed and delivered in presence of

WILLIAM SMITH. HIRAM JONES,



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