An Economic Modelling of Contract of Guarantee

Abstract

The fundamental purpose of this paper is to give and acquire insight into one of the most dynamic instruments available under the Indian Contract Act, 1872, The Contract of Guarantee, by using the tools of economics in an effort to create the most efficient contract of guarantee. This will be accomplished by first gaining a textual knowledge of the Contract of Guarantee via the Indian Contract Act and subsequent judgements upon it, and then attempt to model the Contract of Guarantee in a more accurate and more insightful manner.

Keywords: Economic Analysis, Indian Contract Act, Contract of Guarantee