Optimal contract


 

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Optimal contract

The contract that balances the three types of agency costs (contracting, monitoring, and misbehavior) against one another to minimize the total cost.



Optimal contract

Similar Matches

Conditional sales contracts

Conditional sales contracts

Similar to equipment trust certificates, except that the lender is either the equipment manufacturer or a bank or finance company to which the manufacturer has sold the conditional sales contract.


Guaranteed insurance contract

Guaranteed insurance contract

A contract promising a stated nominal interest rate over some specific time period, usually several years.


Contract note

Contract note

A confirming note, containing details of a stock exchange deal, which is sent by a broker to a client. The contract note shows you:the date and time of dealthe title of the securitythe number bought/soldthe price paid/receivedthe total value of the dealthe stamp duty (if a purchase of shares)the amount of commission charged by the brokerTraditionally, contract notes are posted. Some online brokers email them.


Cash settlement contracts

Cash settlement contracts

Futures contracts such as stock index futures that settle for cash and do not involve delivery of the underlying.


Contract for deed

Contract for deed

A contract in which the seller agrees to defer all or part of the purchase price for a specified period of time.


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futures contract
retirement annuity contract (RAC)
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Conditional Sales Contract
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contracting out


 
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