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The authors argue that the rules and practices of corporate law mimic contractual provisions that parties involved in corporate enterprise would reach if they bargained about every contingency at zero cost and flawlessly enforced their agreements. But bargaining and enforcement are costly, and corporate law provides the rules and an enforcement mechanism that govern relations among those who commit their capital to such ventures. The authors work out the reasons for supposing that this is the exclusive function of corporate law and the implications of this perspective.

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Book Details

ISBN: 9780674235397
ISBN-10: 0674235398
Format: Paperback
(235mm x 155mm x 22mm)
Pages: 384
Imprint: Harvard University Press
Publisher: Harvard University Press
Publish Date: 1-Apr-1996
Country of Publication: United States

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Author Biography - Frank H. Easterbrook

Frank H. Easterbrook is a judge of the U. S. Court of Appeals for the Seventh Circuit. Daniel R. Fischel is Lee and Brena Freeman Professor of Law at the University of Chicago.