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- What is a bond?
Claudius du PlooyBusiness Law
A bond is sought out by a buyer to ensure that the company they've hired to perform work for them will meet their obligations. Bonds are therefore provided in the form of a Letter of Guarantee from the company's bank or from a Surety Company. Buyers can demand bonds at any stage of the working relationship. They are expensive to issue and they require that the bank ask for collateral of some sort in exchange for issuance.
About Claudius du Plooy
Claudius du Plooy, BComm, LLB, LLM is Founder of Claudius du Plooy Law Firm, a practice focussed on business law (corporate commercial law), securities law, commercial real estate development, entertainment law and international trade law. Claudius is passionate about SMEs.