Penal bond
Okay kiddo, let me explain about Penal Bond. It’s like a promise you make to your friend to do something, and if you don’t do it, you will have to give her/him a toy.
Similarly, a Penal Bond is a type of contract where two people or organizations make a deal, and one person promises to do something specific. In case that person doesn't do what they promised, they have to pay a certain amount of money (like a toy!) to the other person as a penalty.
Let's say you want to borrow some money from your dad to buy a toy. He might ask you to sign a penal bond where you promise him that you will return the money by a specific date. If you fail to return the money, you will have to pay him extra money as a penalty, just like a toy.
So, it's a type of agreement where a penalty is attached to make sure everyone does what they said they would. It helps to make sure people take their promises seriously, and it makes sure that everyone follows through with their commitments.
Similarly, a Penal Bond is a type of contract where two people or organizations make a deal, and one person promises to do something specific. In case that person doesn't do what they promised, they have to pay a certain amount of money (like a toy!) to the other person as a penalty.
Let's say you want to borrow some money from your dad to buy a toy. He might ask you to sign a penal bond where you promise him that you will return the money by a specific date. If you fail to return the money, you will have to pay him extra money as a penalty, just like a toy.
So, it's a type of agreement where a penalty is attached to make sure everyone does what they said they would. It helps to make sure people take their promises seriously, and it makes sure that everyone follows through with their commitments.