Bond for Performance of above Agreement
KNOW ALL MEN by these presents:
That, we (Bailee) Company, as principal, and the _____________ (Surety) Company, as surety, are held and firmly bound unto ABC Ltd. Manufacturing Company, a Company incorporated under the Companies Act, 1956, in the sum of Rs. _________ for which payment well and truly to be made we do bind ourselves firmly by these presents.
Dated at _________ this ______ day of _____ 20___
The condition of this obligation is such that, whereas, the said ABC Ltd. (Manufacturing Company) (hereinafter called as ‘Manufacturer’), has entered into a contract with XYZ Ltd. Company (hereinafter called as ‘Customer’), which provides a plan in accordance with which the (goods) already contracted to be sold by the Manufacturer to the Customer, and other (goods) which may in the future by contracted to be sold by the said manufacturer to the said Customer may be placed by the said manufacturer in the hands of its warehouseman (hereinafter called as ‘Bailee’), at ________ to be stored and held by said Bailee as the property of the said Manufacturer, and to be delivered and accounted for in accordance with the provisions of said contract, which is dated _______ day of ____, _____ a copy of which contract is hereto attached and marked “Exhibit A”.
NOW, if the said Bailee shall well, honestly, and faithfully preform and discharge his duties as such Bailee for the said ABC Ltd. (Manufacturing Company) and shall account for all property and all money which shall come into his possession or under his control by reason of his employment, and shall safely keep, protect, and hold the said property which shall be confided to him as said Bailee, and shall not deliver the same except upon the written orders of the said Manufacturer, or in accordance with the provisions of the foregoing written contract, and shall assume and pay all loss, damage, or expense which the said ABC Ltd. (Manufacturing Company) may sustain or incur through any act, neglect, mismanagement, or default of said Bailee then, this obligation to be void; otherwise to remain in full force and effect.
PROVIDED that any forbearance on the part of the said ABC Ltd. (Manufac- turing Company) in respect to the neglect or failure of the said Bailee to faithfully perform and discharge any or all of his duties as such Bailee or any extension or extensions of time or times of said payments of money or deliveries of property, or of any payment for said losses, damages and expenses, shall not in any manner operate to release or discharge the said _________ (Surety Company) from its liability under the above obligation.
This obligation is intended to cover only such (goods) as may be placed in the custody of the said Bailee within one year from the date hereof; PROVIDED HOWEVER, that this bond may be renewed from year to year by the payment to the surety of an annual premium equal to that charged for the first year.
Signed and Delivered in the presence of:
