Bond and agreement
mahendrakumar
(Querist) 10 September 2011
This query is : Resolved
is there any difference between a bond and an agreement? if so on what aspects they differ?
adv. rajeev ( rajoo )
(Expert) 10 September 2011
Bond means stamp paper and agreement some times on the bond paper. In ordinary language stamp papers called as bond papers
Sailesh Kumar Shah
(Expert) 10 September 2011
i humbly disagree with Mr. Adv. Rajeev
"stamp papers called as bond papers".
it is not correct.
Sailesh Kumar Shah
(Expert) 10 September 2011
Definition of Bond as per The Indian Stamp Act, 1899:-
(5) “bond” includes”
(a) any instrument whereby a person obliges himself to pay money to another, on condition that
the obligation shall be void if a specified act is performed, or is not performed, as the case many
be ;
(b) any instrument attested by a witness and not payable to order or bearer, whereby a person
obliges himself to pay money to another; and
(c ) any instrument so attested, whereby a person obliges himself to deliver grain or other agricultural produce to another;
Sailesh Kumar Shah
(Expert) 10 September 2011
Definition of stamp
“Stamp” means any mark, seal or endorsement by any agency or person duly authorized by the State Government, and included and adhesive or impressed stamp, for the puroposes of duty chargeable under this Act
mahendrakumar
(Querist) 10 September 2011
while thanking Mr.Shailesh for the part answer, I request you and others on other aspects of difference between bond and an agreement on legal terms.
Sailesh Kumar Shah
(Expert) 10 September 2011
Bond and Agreement - Difference between, An instrument containing a covenant to do a particular act, the breach of which is to be compensated in damages, is not a bond. Mohinder Singh v. Samir Singh 1968 Cur. L.J. 489: 1966-68 PLR (Sup.) 120: 1LR (1969) 1 Punjab 529.
The essential feature for constituting a document as a bond is that there must be an obligation to pay and the instrument must be attested. If there is a promise to pay without attestation it will be called an agreement. Saroop Chand v. State of Punjab, 1971 PLJ722: 1971 RLR502: 1971 LLT65 (FCP).
Guest
(Expert) 10 September 2011
IN BOTH IT MUST BE ATTESTED BY WITNESSES.
Guest
(Expert) 10 September 2011
Dear Mahendra Kumar,
In simple terms --
A bond is a type of ONE-SIDED agreement on the part of the executant that contains detailed terms of contract to abide by on failing which some penalty is leviable or some security is forefieted by the other party.
On the other hand, an agreement a TWO-SIDED contract with conditions to be abided by on the part of each party to the agreement, as mutually agreed. In other words this type of document (agreement) that binds both the parties.
prabhakar singh
(Expert) 10 September 2011
Definition of Bond as per The Indian Stamp Act, 1899 has already been provided to you by Mr.Shah.
The definition of agreement is provided in Indian Contract Act,s.2(a)as follows:
"a) When one person signifies to another his willingness to do or to abstain from doing anything, with a view to obtaining the assent of that other to such act or abstinence, he is said to make a proposal;"
So Mr. Dhingra is right in saying that BOND IS ONE SIDED DETAILING TERMS OF CONTRACT TO BE
OBEYED BY THE EXECUTANT ONLY.
R.Ramachandran
(Expert) 10 September 2011
Please find attached a detailed treatise on Bond bringing out the various aspects of bond.
The treatise also brings out the salient difference between a bond and an agreement.
Hope this proves useful.
mahendrakumar
(Querist) 10 September 2011
thanks to all for participating and contributing.
girish shringi
(Expert) 11 September 2011
I will appreciate Mr. Shailesh Shah for his categorical reply.
malipeddi jaggarao
(Expert) 13 September 2011
I agree with Mr.Dhingra's explanation.
I quote the examples:
Bond: Liquor (Excise) guarantees given by the Bank. In this guarantee, the beneficiary is Excise Commissioner (Government) and the contract is between the Bank and the beneficiary. But the beneficiary is has no duties under this agreement, only Bank has duty to pay the specified amount in case of performance/non-performance by the third party (who request the Bank to issue the guarantee). Since only one party (Bank) is having obligations and the other party in whose favour the guarantee bond is issued is not having any obligations with the Bank, it is a bond.
All agreement who binds both the parties are contracts.
