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Contract theory has become the dominant analytical research paradigm in managerial accounting over the last two decades, informing the managerial accounting literature both directly and indirectly. In the former case, formal contract theory modelling of managerial accounting issues has provided important insights into the design and role of managerial accounting systems. In the latter case, many of the hypotheses tested in recent behavioural and empirical research in managerial accounting have been derived from informal reasoning based on contract theory. Thus, any recipient of recent and future managerial accounting research would benefit from understanding contract theory. This chapter seeks to provide that understanding. It begins with a non-technical explanation of the contract theory model and a demonstration of how two types of incentive problem are formulated within that framework. It then discusses three managerial accounting issues to which formal contract theory analysis has been applied.

Chapter 6 outlines the ongoing activities taking place in the debate about European contract law and their bearing on the constitutional dimensions of European contract law. These activities comprise three main components: the Common Frame of Reference (CFR) project, the Commission’s plans for the review of the consumer acquis leading to the adoption of the Consumer Rights Directive, and the possible enactment of one or more optional instruments of contract law and the promotion of EU model contract terms, which has recently reached a crucial culmination stage with the Commission’s proposal for a Regulation on a Common European Sales Law (proposed CESL).

Mesopotamian scribal education in the Old Babylonian (OB) period included exposure to a wide range of legal-oriented texts, including sample or “model contracts,” “model cases” (or fictional cases), legal phrasebooks, and short series of laws. Although not all of these texts had immediate application, a number of them had ties to law on the ground. Sumerian model contracts, the fictional cases, and legal phrasebooks all include contractual clauses that mirror those used in actual OB contracts. The student exercise known as Laws about Rented Oxen likewise exhibits parallels with actual contracts of hire. When this diverse content is examined as a whole, it becomes apparent that the legal-pedagogical texts reflect a cultural matrix unto themselves, with copious cross-references and abundant links to law beyond the educational sphere. This legal-pedagogical content provides a crucial foundation for the reassessment of the origins of biblical law.

This chapter considers how restrictions on cross-border transfers of data work, or perhaps don't work, in cloud environments and how they might be improved. The concept of ‘transfer’ and the prohibition on transfers of personal data to countries that fail to provide an adequate level of protection for personal data are explained. Various exception to, and derogations from, the transfer prohibition rule are evaluated, including consent, the US Safe Harbor, model contract clauses, and Binding Corporate Rules (BCR).

This concluding chapter argues that the nexus-of-contract model continues to bear importance in analyses of the corporation but that this model only explains part of the story. While the corporation is certainly a hub of contractual relationships, it remains subject to the increasingly important phenomenon of shareholder-driven corporate governance (SCG). The chapter examines policy choices in a regime that allows and facilitates SCG. SCG is a trend to be observed, but it is also an ideal to be achieved. Achieving this ideal calls for greater shareholder participation in corporate governance, a weighty objective that can be reached by providing shareholders with the ability to nominate directors, imposing protections in dual-class share companies, and imposing restrictions on executive compensation, for example.