Which term refers to a deposit of money or bond placed in court to secure obligations?

Which term refers to a deposit of money or bond placed in court to secure obligations?

• A. Statute of limitations
• B. Surety
• C. Undertaking
• D. Transcript

Answer: (C)

An undertaking is a written promise filed with the court to secure a party’s obligations, typically backed by a cash deposit or a bond. This security protects the other party by ensuring that if the obligation isn’t fulfilled—such as complying with a court order or covering costs and damages if the relief granted is later found to be wrongful—the funds are available to cover those amounts. The idea is to provide financial assurance to the court and the parties while the matter is resolved. The other terms don’t fit because: a statute of limitations refers to the time limit to bring a lawsuit, not to securing obligations; a surety is the person or entity that guarantees payment, not the deposit itself; and a transcript is the official record of what occurred in court, not a deposited security.

An undertaking is a written promise filed with the court to secure a party’s obligations, typically backed by a cash deposit or a bond. This security protects the other party by ensuring that if the obligation isn’t fulfilled—such as complying with a court order or covering costs and damages if the relief granted is later found to be wrongful—the funds are available to cover those amounts. The idea is to provide financial assurance to the court and the parties while the matter is resolved.

The other terms don’t fit because: a statute of limitations refers to the time limit to bring a lawsuit, not to securing obligations; a surety is the person or entity that guarantees payment, not the deposit itself; and a transcript is the official record of what occurred in court, not a deposited security.