Labour Law & Hr Consultant
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Aniket Pathak
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As far as my knowledge Agreement is executed between two persons mentioning obligations of both party whereas in Bond only express the obligation of one party only towards the other party. so my question is whether Bond executed by the the one party by whom obligations were expressed can be valid?
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In legal sense, a bond is a documented contract between two or more parties creating certain rights and obligations which are mutual. At times, it may necessarily contain only the obligation of one party to the other out of their already existing contractual relationship. For instance, an employment bond executed by the employee to serve the employer for a certain period failing which to pay a certain sum to the employer. Its validity of enforcement depends upon various factors such as the investment made by the employer to train the employee, the reasonableness of the length of the bond period etc.
Normally a company enters into a bond for minimum service of employees who are given special training at companies expense.
You have got confused and are talking about one sided of employee liabilities/duties only.
The company has done its side by giving specialised training and then expects employee to work for at least ---- years.
As long as bond period is reasonable and consequences of breaching the bond are quantifiable and reasonable, the bond remains a valid Document, enforeble by the company on breach of terms which are agreed by employee.
In addition, the bond also becomes an agreement when both parties agree to the terms and conditions of the bond. i.e. when you sign it.
Bond is not legal, even if both parties sign it , if justifiable expenses are not there for training etc.
If the bond is there , just to bind the employee for a certain period, then it illegal.
Col.Suesh Rathi
Bond as an agreement has to necessarily have two parties at least, expressing mutual relations, rights and obligations. A bond can be one sided too like an indemnity bond etc. Such bonds are undertakings and can be relied upon in the court proceeding.
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