What type of bond protects a defendant against a loss?

What type of bond protects a defendant against a loss?

• A. Performance Bond
• B. Attachment Bond
• C. Indemnity Bond
• D. Replevin Bond

Answer: (B)

An attachment bond is specifically designed to protect a defendant from losses that may occur if an attachment is wrongfully obtained against their property. When a plaintiff requests the court to place a lien or freeze a defendant's assets while a legal action is pending, an attachment bond may be required. This bond guarantees that if the court later finds in favor of the defendant, any damages suffered as a result of the wrongful attachment will be compensated. In contrast, other types of bonds serve different purposes. A performance bond ensures that a contractor completes a project according to the contract terms, while an indemnity bond provides financial protection against losses arising from specific events or actions. A replevin bond allows a party to recover their property before a final judgment is reached, but it does not directly address losses incurred by the defendant. Therefore, the attachment bond is the correct choice for protecting a defendant against potential losses.

An attachment bond is specifically designed to protect a defendant from losses that may occur if an attachment is wrongfully obtained against their property. When a plaintiff requests the court to place a lien or freeze a defendant's assets while a legal action is pending, an attachment bond may be required. This bond guarantees that if the court later finds in favor of the defendant, any damages suffered as a result of the wrongful attachment will be compensated.

In contrast, other types of bonds serve different purposes. A performance bond ensures that a contractor completes a project according to the contract terms, while an indemnity bond provides financial protection against losses arising from specific events or actions. A replevin bond allows a party to recover their property before a final judgment is reached, but it does not directly address losses incurred by the defendant. Therefore, the attachment bond is the correct choice for protecting a defendant against potential losses.