A cost bond or bond for costs is a type of financial guarantee that a party may be required to provide in a legal proceeding. It is typically ordered by a court to ensure that the party will be able to cover the costs and expenses of the opposing party if they are unsuccessful in the case. The bond serves as a form of security for the potential payment of costs and can be forfeited if the party fails to pay the awarded costs.
A cost bond, also known as a bond for costs, is a type of surety bond that guarantees payment of court costs and other expenses associated with a legal proceeding.
A cost bond may be required by the court when a party files a lawsuit or initiates legal action. It is typically required when there is a risk that the party may not be able to cover the costs if they lose the case.
The party who is required to post a cost bond is responsible for obtaining it. This is usually the plaintiff or the party initiating the legal action.
The cost of a cost bond can vary depending on the jurisdiction and the specific case. It is usually a percentage of the total amount of costs that may be incurred during the legal proceeding.
In some cases, a court may waive the requirement for a cost bond if the party can demonstrate financial hardship or if there are other compelling reasons to do so. However, this is at the discretion of the court.
If a party fails to obtain a required cost bond, the court may dismiss the case or take other appropriate actions. This can vary depending on the jurisdiction and the specific circumstances of the case.
No, a cost bond is specifically meant to cover court costs and other expenses related to the legal proceeding. It cannot be used to cover attorney’s fees unless specifically allowed by the court.
No, a cost bond is not typically used as a form of security for a judgment. Its purpose is to ensure payment of costs and expenses during the legal proceeding, not to secure a judgment.
In most cases, a cost bond cannot be transferred to another case. It is specific to the legal proceeding for which it was obtained. If a new cost bond is required for a different case, it must be obtained separately.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 6th April 2024.
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