4.3.3.2 Common Law Contract Bonds

• Jurisdiction: Arizona

Generally, the courts measure the obligation of the surety on a common law bond by the terms set forth in its bond.^[9] Private contract bonds are generally construed according to the same rules that apply to other contracts. The Arizona courts have stated this rule on several occasions as follows:

The liability of a surety is measured by his contract, and, whether he is a gratuitous or compensated surety, while he is liable to the full extent thereof, such liability is strictly limited to that assumed by its terms * * * and the surety has the right to stand on the...