Which type of bond is also referred to as a litigation bond?

The term "litigation bond" specifically refers to a type of bond that falls under the category of judicial bonds. These bonds are required in various legal proceedings to ensure that a party can fulfill their obligations as mandated by the court. The purpose of judicial bonds, such as appeal bonds or injunction bonds, is to guarantee that, if the party that secured the bond loses the case or fails to fulfill their court obligations, the bond will cover any resulting damages or legal costs.

For example, if someone wishes to appeal a court decision, they may be required to post an appeal bond to ensure that the court expenses will be paid if the appeal fails. This protects the interests of the opposing party, providing them assurance that they will not be left with unpaid costs due to the appeal.

The other types of bonds listed do not serve this specific function. Contract bonds, for example, are used to guarantee the completion of a contract, while commercial bonds are typically used for various business purposes. Performance bonds ensure that a contractor will complete a project as specified in the contract. While these bonds are important in their own right, they do not directly relate to litigation or legal proceedings in the way judicial bonds do.