A written instrument admitting an obligation on the part of the maker to pay a certain sum of money to another specified person at a fixed time, for a valuable consideration, is called a bond. The obligor is the one giving the bond; the beneficiary is called the obligee. This definition applies to all bonds, but generally these instruments are given to guarantee the performance or non-performance of certain acts by the obligor, which being done or left undone, as the case may be, the bond becomes void, but if the conditions are broken it remains in full force. As a rule, the bond is made out for a sum twice the amount of any debt which is apt to be incurred by the obligor under its conditions, the statement being set forth that the sum named is the penalty, as liquidated or settled damages, in the event of the failure of the obligor to carry out the conditions.

An act of Providence, whereby the accomplishment of a bond is rendered impossible, relieves the obligor of all liability.

A bond for the payment of money differs from a promissory note only in having a seal.