Nexus of Contracts


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Nexus of Contracts

Any contract or other thing that is related to anything else, especially something that causes something else.
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That is, nexus of contracts is more than a metaphor--it's a rule of construction.
Moreover, they might signal the final gasp of the nexus of contracts theory--at least in its descriptive guise.
Viewing the firm as a nexus of contracts at first instance provides a conceptual basis for challenging the dominant shareholder ideology which, critics such as Lazonic and O'Sullivan (2000) argue, has proved to be counterproductive to both the generation and distribution of wealth in the Anglo-American variety of capitalism.
Kenneth Ayotte, Northwestern University Law School, and Henry Hansmann, Yale University, "A Nexus of Contracts Theory of Legal Entities"