General Content of Management Contracts

This paper presents management contracts (contracts under which corporate management is assigned to another company) as relational contracts, i.e. contracts to which relational contracts theory may apply and explain their character and specific features.We present the key concept and benefits behind management contracts, the role of the provider and its fiduciary duties and the specific and sui-generis relation developed between the parties and characterised by increased trust, interdependence, incompleteness, renegotiation, permanent and active cooperation, merge of managerial structures and incomplete allocation of powers and duties. Finally, we summarise the key factors that define each specific relation's particular depth, scope and relational element, thus underlining the strong relational character of such contracts. This relational character make them suitable for an experimental application of relational contracts theory key ideas and content