A contract bond guarantees faithful performance of a construction contract and payment of all material and labor bills related to that contract. A Performance Bond covers faithful performance only; a Payment Bond guarantees payment of material and labor expenses.
Court bonds are required for court-appointed officials entrusted with managing the property of others; executors of estates and receivers in bankruptcy are frequently required to post fiduciary bonds. Other types of court bonds include appeal bonds, which guarantee that a judgment will be paid if an appeal is lost in a higher court.
These types of bonds are sometimes referred to as fidelity bonds and are insurance bonds taken by a business or employer on designated employees. The bonds provide insurance coverage in the event of employee theft, fraud, or misrepresentation.