On Legal Issues In Bond

Although both bond and guarantee have the same function ensuring creditor's rights, they are belong to different category. Bond has the premise element, function element and basis element of insurance. Judging from jurisprudence, legal regulations and reality, bonds should belong to the insurance category.The insurable interest of bond is negative interest. The creditor of foundation contract is the third party of insurance contract only. Insurance money should be paid directly to the third party. These two characteristics caused bond to have the general condition of liability insurance. Looking from the realistic demand and the legal environment, our country exists the necessity and the possibility of the violation liability insurance. We should confirm explicitly that the nature of bonds insurance is violation liability insurance. The defense right, the previous recovery right and the agreement of bond insurance should be solved according to the above.The paper has four chapters. the first chapter outlines for the bond insurance. The second chapter and the third chapter confirm the nature of bond insurance. Legislation suggests of bond is proposed in fifth chapter according to the success and failure of legislation of our country.