A bid bond is a type of indemnity bond and a type of performance bond.
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bid bond:
(1935)
1. A bond filed in public construction projects to ensure that the bidding contractor will enter into the contract. * The bid bond is a type of performance bond. [1]
1. A bond required of one who bids in the letting of a contract for the construction of a public improvement, the purpose of the bond being to indemnify the pubic body against loss resulting form the withdrawal of the bid of the refusal of the bidder, upon the award of the contract to him, to enter into a contract. 43 Am J1st Pub Wks §§ 62, 63.
See responsible bidder. [2]
1. A bond required of a person who bids on the letting of a contract for construction of a public improvement. The purpose of the bond is to indemnify the public against the consequences of a bidder’s failure to follow through on the bid.
See letting a contract; responsible bidder. [3]
References:
Disclaimer: All material throughout this website is compiled in accordance with Fair Use.
[1]: Black’s Law Dictionary Deluxe Tenth Edition by Henry Campbell Black & Editor in Chief Bryan A. Garner. ISBN: 978-0-314-62130-6
[2]: Ballantine’s Law Dictionary with Pronunciations
Third Edition by James A. Ballantine (James Arthur 1871-1949). Edited by William S. Anderson. © 1969 by THE LAWYER’S CO-OPERATIVE PUBLISHING COMPANY. Library of Congress Catalog Card No. 68-30931
[3]: Ballantine’s Law Dictionary Legal Assistant Edition
by Jack Ballantine (James Arthur 1871-1949). Doctored by Jack G. Handler, J.D. © 1994 Delmar by Thomson Learning. ISBN 0-8273-4874-6.
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