Moelmann; Horowitz

The Law of Performance Bonds

This updated and greatly expanded Second edition is written for the experienced and novice practitioner alike, and covers the major issues relating to the performance bond. The book is now almost twice the size of the previous edition, and begins by discussing the fundamentals of a suretyship relationship and how it is created. All issues pertaining to a default situation are analyzed, including what constitutes a default, notice requirements, and the rights of a surety upon default. Separate chapters are devoted to the surety's right to contract balances and the remedies that are available under the General Indemnity Agreement. The book also discusses in detail obligations and liabilities of the surety, which obligations arise from contract or are "extracontractural" in nature. Authors identify the rights and remedies of principals and indemnitors against the surety, and provide a comprehensive review of the defenses that are available to the surety in response to such claims. The guide also contains chapters on litigation issues, such as venue and statute of limitations; the impact of arbitration clauses upon the surety; and issues that affect the surety in the event of a bankruptcy proceeding filed by the principal or indemnitor. Experts discuss issues that are the subject of recurring litigation, including challenges by third parties to a surety's right to contract balances; the use of the "strong-arm" provisions of the General Indemnity Agreement against recalcitrant principals or indemnitors; allegations of bad faith; and how to avoid the potential minefield presented by bankruptcy proceedings. The guide includes a comprehensive discussion of the most current cases addressing these and other performance bond issues, and represents the most comprehensive and up-to-date treatment of performance bonds available anywhere.