Bond Legal Meaning and Definition

Here is a simplified definition of the legal term Bond.

Bond (noun)

A bond is a written agreement or legal document that often involves money. It is a promise made by a person or an organization (the 'bond issuer') to do a certain thing, such as pay back a debt, complete a project, or fulfill other obligations. A bond may also be a guarantee that if the person or organization doesn't do what they've promised, the person or entity who holds the bond (the 'bondholder') will get compensated. Bonds often detail the terms and conditions of this agreement.