The IT Law Wiki

Definition[]

A bond is a sum of money that a party must post before a court order (generally a preliminary injunction) will take effect.

Overview[]

The purpose of the bond is to protect the party who is the target of the order and who will be barred from engaging in certain conduct and may suffer damages as a result. If a court later determines that the prior court order was wrongfully granted, the targeted party may recover the damages it can prove were caused by the order, up to the total amount of the bond.