Sec 689

In the common money bond, the obligor binds himself in double the amount of the debt to pay the debt at a particular day, the condition being that in case of such payment the cautionary amount shall not be due. But bonds with penalties are not lim-, ited to money conditions. Other conditions, such as special acts to be done by the obligor or by third parties, may be introduced. But whatever may be the conditions, courts of equity have always refused to permit the penalty to be exacted if the condition was performed, and in case of failure to perform the condition in bonds for payment of money, have limited the amount to be collected to the principal debt with interest. And by statute of 4 & 5 Anne, c. 16, in force in several jurisdictions in the United States, and adopted as part of the common law in other jurisdictions, it is provided that "where an action is brought on any bond which hath a condition to make void the same upon payment of a lesser sum at day or place certain, if the obligor have, before the action brought, paid to the obligee the principal and interest due by the condition, though such payment was not made according to the condition, yet it shall and may be pleaded in bar of such action, and shall be as effectual a bar thereof as if the money had been paid at the day and place according to the condition." And by section 13, the defendant may pay into court the principal money and interest, with costs, in satisfaction of the bond. Under this and subsequent statutes, a bond with a condition creates a debt payable only on breach of the condition, and in an action on the bond a plea that the condition had not been broken is good in bar of the suit.1 And in equity, bonds with special conditions are regarded as being directed exclusively to the performance of the condition, and the obligee will not be permitted, whenever the condition can be performed under the direction of the court, to turn into a claim for the penalty his right to have the condition performed.2

Common money bonds bind only for actual indebtedness.

1 Milbourn V. Ewart, 5 T. R. 381; Hinton V. Acraman, 2 C. B. 367; Bes-wick V. Swindalis, 3 A. & E. 868; Tay-loe V. Sandiford, 7 Wheat. 13; Wallis V. Carpenter, 13 Allen, 19; Dewey V.

Watson, 1 Gray, 561; Lindesay V. Amesley, 6 Ired. 186.

2 Leake, 2d ed. 146; Chilliner V. Chilliner, 2 Ves. Sen. 528.

Sec 690

As is elsewhere fully seen, a specialty may be modified or rescinded by parol if there be no statutory inhibition, supposing that in this way the mutual intention of the parties is effected, and supposing that the rights of third parties are not affected.1

Sec 691

The rules for the construction of sealed documents are the same as those which obtain for the construction of other documents.2

Specialty may be modified or rescinded by parol.

Rules of construction the same as for other documents.

1 See Wh. on EV. sec 1050 et seq. See Brown V. Brine, L. R. 1 Ex. D. 5; Canal Co. V. Ray, 101 U. S. 502.

2 See fully supra, sec 627 et seq.; 2 Story Eq. Jur. sec 736-47; Doloret V. Rothschild, 1 Sim. & St. 590.