Florida Contractor Practice Exam

Which type of bond is not defined by any statutes?

1. Performance Statutory bonds

2. Common Law bonds

3. Bonds

4. Liability bonds

The correct answer is: Common Law bonds

The correct answer is common law bonds. These bonds are created and enforced under the principles of common law rather than by specific statutory provisions. This means that their terms and legal frameworks are derived from court decisions and established customs rather than from written laws enacted by the legislature. In contrast, performance statutory bonds are specifically defined by statutes that outline their requirements and enforcement. Statutory bonds serve specific purposes and are mandated by law, providing a clear framework for their use. Liability bonds also fall under specific statutes or regulations that dictate their terms and conditions, outlining the responsibilities and liabilities of the parties involved. Common law bonds, however, arise from the judicial system and are more flexible, allowing parties to craft terms that suit their specific needs as long as they comply with the overarching principles of common law. This distinction sets common law bonds apart, highlighting their lack of definition within statutory frameworks.