Encyclopedia of Economic Law Journal

Analysis of contractual securities from the perspective economic law

Document Type : Scientific research

Authors

Omid Mohammadinia 1
Ali Saatchi 2

1 Assistant Professor, Department of Law, Faculty of Literature and Humanities, Vali-e-Asr University of Rafsanjan, Rafsanjan,Iran

2 Assistant Professor, Department of private law, Faculty of law and political sciences, Ferdowsi university of Mashhad, Mashhsd, Iran.

https://doi.org/10.22067/economlaw.2023.80689.1247
Abstract
The topic of this research is about legal-economic analysis of contractual securities. Contractual securities are the most appropriate tool against violation of contractual obligations by the other party. Consumers of goods and services seek appropriate securities. This seeking is based on modules of economic analysis like mentality, tools of preferences, maximization of appropriateness, game theory, and technical and skilled efficiency, which is an integral part of an economic agent in the market. Generally speaking, the existing securities in a contract are securities related to the time after execution of an obligation and related to the execution of a obligation. The former is more in the framework of performance bond of non-execution or delay in contractual obligation and or in the framework of third party’s securities. Also, securities of services or objects of sale are related to guarantees and warranties. In this research, sorts of securities in contracts are examined. In conclusion, from an economical and legal point of view, the more effective the will of oblige in the selection and determination of security and rule of will instead of the law, the more efficient the securities. Consequently, these securities are efficient, due to better-providing preferences. Moreover, product-oriented contracts, guarantees, and warranties based on game theory could fulfill cooperative games. The integration of all sorts of contractual securities is possible and necessary.

Keywords

Contractual securities
performance bonds
guarantee
Warranty
Economical analysis

©2023 The author(s). This is an open access article distributed under Creative Commons Attribution 4.0 International License (CC BY 4.0)

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  • Receive Date 13 March 2023
  • Revise Date 05 June 2023
  • Accept Date 23 August 2023

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