Meaning of Bottomry Bond. (Business Studies)
Bottomry bond is a contract where the ship and cargo is given security in an emergent situation to raise loan for the sake of completing the voyage. The bond is executed by the master of the ship in such an emergency is called a bottomry bond. he money borrowed under this contract is repaid when the ship arrive in the port of destination safely. However if ship sunk during the remaining course of voyage, the amount borrowed is not paid. However, if load is taken by the security of cargo, it is called Respondentia Bond.
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