Texas General Lines — Property and CasualtySurety and BondsMedium
A court orders a defendant to pay a certain sum to the plaintiff, but the defendant wishes to appeal the decision. To prevent the plaintiff from immediately collecting the judgment while the appeal is pending, the court requires the defendant to obtain a bond guaranteeing payment if the appeal is unsuccessful. What category of bond does this fall under?
- AFidelity Bond
- BLicense and Permit Bond
- CJudicial Bond
- DContract Bond
Show answer & explanationAnswer & explanation
Correct answer: C. Judicial Bond
Judicial bonds are required in connection with court proceedings. An appeal bond (or supersedeas bond) is a common type of judicial bond that guarantees payment of a judgment if the appeal fails, allowing a stay of execution.
Why the other options are wrong
- A. Fidelity bonds cover employee dishonesty.
- B. License and permit bonds ensure compliance with regulations for specific licenses/permits.
- D. Contract bonds guarantee performance of contracts.
Judicial Bond
A category of surety bonds required by courts to protect parties involved in legal proceedings.
- Includes appeal bonds, attachment bonds, guardianship bonds.
- Guarantees compliance with court orders or payment of judgments.
- Often required to allow specific legal actions or to stay execution of judgments.
Memory trick: Judicial: Judge's order, Jury's decision, Justice's bond.