What type of bond is not defined by any statutes?

Common Law bonds are not defined by any statutes, which distinguishes them from statutory bonds that are created and regulated by specific laws. Statutory bonds, such as performance bonds or payment bonds, are required under various state laws and serve specific statutory purposes related to construction and contractual obligations.

In contrast, Common Law bonds arise from traditional legal principles and precedents rather than from written laws or regulations. They are based on the common law system, which is rooted in court decisions and legal customs over time. These bonds can be more flexible and adaptable to individual circumstances, but they lack the clear statutory definitions and requirements that govern other types of bonds.

Understanding the difference is vital for contractors and businesses because it highlights the regulatory landscape they must navigate to ensure compliance with applicable laws when it comes to bonding requirements for their projects.