Not all bonds are created equal: distinguishing a common law bond from a statutory bond.
Florida Bar Journal › Vol. 79 Nbr. 2, February 2005
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Florida
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Not all bonds are created equal: distinguishing a common law bond from a statutory bond.
Too often in the law, great advancements are encountered by greater obstacles. It is no secret that Florida's construction industry is booming, yet so is the litigious nature of the Sunshine State. While construction litigation may be spawned by a variety of sources, the primary path to the courtroom is most often paved by a pen, not a pulley. Ambiguous drafting of documents, including general contracts, subcontracts, performance bonds, and so forth, is the predominant cause for the intimate relationship between the construction industry and the legal system. This article shall serve to facilitate a better understanding of what constitutes a statutory bond issued for the construction or repair of a public building, and a common law performance bond serving the same or a similar purpose. The former is subject to the requirements and limitations of F.S. [section] 255.05; the latter is unfettered by exacting statutory constraints.
F.S. [section] 255.05 requires the acquisition of a payment and performance bond by any person entering into...See the full content of this document
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