Injunction Bond

An injunction bond is a type of legal guarantee required when someone asks a court for an injunction, which is a directive to stop another party from doing something. The bond ensures that if the court later decides the injunction was unwarranted, the person who requested it will compensate the other party for any damages suffered due to the injunction. Essentially, it's a financial commitment designed to protect the rights of the party being restricted, ensuring they are not unfairly harmed while the court considers the case.