A’s son forged B’s signature on a promissory note. Under the threat of legal action against A’s son, B secured a bond from A for the amount stated in the forged note. If B initiates a lawsuit based on this bond, what is the likely outcome?

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The court will permit the lawsuit to proceedThe court has the authority to annul the bondThe court may both accept the suit and annul the bondNone of the above outcomes applyThe bond is automatically considered valid

Explanation

Since the bond was obtained under threat related to a forged promissory note, the court may invalidate the bond to prevent enforcement of an agreement based on fraudulent circumstances. Therefore, the court can set aside the bond despite any suit filed on it.