B-153097, MAR. 12, 1964

B-153097: Mar 12, 1964

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GENERAL SERVICES ADMINISTRATION: WE ARE IN RECEIPT OF A LETTER DATED DECEMBER 10. IT HAS BEEN HELD THAT A CONSIDERATION IS ESSENTIAL TO THE ENFORCEABILITY OF A COMMON LAW BOND. IN TIMES PAST THE EFFECT OF EXECUTION OF A BOND UNDER THE SEAL OF THE OBLIGOR WAS TO DISPENSE WITH THE NECESSITY FOR CONSIDERATION. THE RULE THAT A SEAL IMPORTS CONSIDERATION IS STILL SIGNIFICANT IN MANY JURISDICTIONS. WE HAVE NO OTHER COMMENT TO OFFER WITH RESPECT TO THE PROPOSED REVISIONS.

B-153097, MAR. 12, 1964

TO ADMINISTRATIVE, GENERAL SERVICES ADMINISTRATION:

WE ARE IN RECEIPT OF A LETTER DATED DECEMBER 10, 1963, SIGNED BY THE ASSISTANT GENERAL COUNSEL, REGULATIONS AND GENERAL LAW DIVISION, REQUESTING OUR CONCURRENCE OR RECOMMENDATIONS FOR CHANGES WITH REGARD TO PROPOSED REVISED EDITIONS OF THE STANDARD BOND FORMS NOS. 24, 25, 25A, 34 AND 35, PRESCRIBED FOR USE IN CONNECTION WITH GOVERNMENT CONTRACTS.

IT HAS BEEN HELD THAT A CONSIDERATION IS ESSENTIAL TO THE ENFORCEABILITY OF A COMMON LAW BOND. SCOTT V. SHREEVE, 12 WHEAT. 605. IN TIMES PAST THE EFFECT OF EXECUTION OF A BOND UNDER THE SEAL OF THE OBLIGOR WAS TO DISPENSE WITH THE NECESSITY FOR CONSIDERATION. UNITED STATES V. LINN, 15 PET. 290; STORM V. UNITED STATES, 94 U.S. 76. THE RULE THAT A SEAL IMPORTS CONSIDERATION IS STILL SIGNIFICANT IN MANY JURISDICTIONS, AND WE, THEREFORE, SUGGEST THE POSSIBLE DESIRABILITY OF RETAINING THE SEAL IN THE CASE OF INDIVIDUAL SURETIES.

WE HAVE NO OTHER COMMENT TO OFFER WITH RESPECT TO THE PROPOSED REVISIONS.