SURETY BOND FOR THE PERFORMANCE BY A NEW PARTNER OF THE COVENANTS CONTAINED IN THE DEED OF PARTNERSHIP
BY THIS BOND I ________________________ (insert the name, address etc. of surety) am bound to (names and addresses, etc., of existing partners) and each of them for the payment to them of the sum of Rs. ____________
Sealed with my seal this _______ day of __________.
WHEREAS:
- By a deed dated the _______ day of _______ and made between (new partner) of (address, etc.) of the First Part the said (one existing partner) of the Second Part and the said (other existing partner) of the Third Part the said (new partner) and the said (existing partners) thereby agreed to become partners in the trade or business of __________ and in all thins directly or indirectly appertaining thereto or necessary for the due and profitable conduct thereof from the ______ day of _______ for the term of _______ years then next ensuing determinable as therein provided the said business to be carried on as therein mentioned at (address) under the partnership name of (description) and also agreed that each of them should contribute in certain prescribed proportions towards maintaining the working capital of the partnership at a sum therein mentioned and that the said partnership business should in all respects be managed and carried on under the terms provisions covenants and agreements therein declared and contained.
- The said (surety) prior to the execution of the said recited, deed and on the faith thereof agreed with the said (existing partners) to enter into and execute the above written bond.
NOW THE ABOVE-WRITTEN OBLIGATION is conditioned to be void in either of the cases following that is to say:
- If the said (new partner) shall well and faithfully perform and observe all the terms provisions covenants and agreements in the said recited deed contained and thereby required to be by him observed and performed or
- In case the said (surety) or his personal representatives shall at all times hereafter keep the said existing partners) and each of them their and each of their personal representatives indemnified against all losses costs charges and expenses which any of them may sustain or be put to by reason of the failure of the said (new partner) to perform and observe the said terms provisions covenants and agreements on the part of the said (new partner) so that the sum paid by the said (surety) in fulfilment of this condition shall at least equal in amount what he would have been liable to pay if his own name appeared throughout the said deed in the place of that of the said (new partner) and he the said (surety) had failed to perform and observe such terms provisions covenants and agreements as are now required by the said deed to be performed and observed by the said (new partner).
Signed etc.
[Signature and seal of surety]
