The Law of Corporate Finance: General Principles and EU Law

Viac o knihe

Investments and contracts are key legal tools for managing cash flow, risk, agency relationships, and information. Many investments rely on one or more contracts, making effective drafting essential to ensure intended cash flow while minimizing risk. Poorly drafted contracts can lead to increased risk. This volume deconstructs contracts used by non-financial firms, analyzing them through the lenses of cash flow, risk, agency, and information. It begins with a generic contract, which is not tied to any specific type, covering foundational concepts in Chapters 2–7. The focus then shifts to payment obligations, a common feature across all financial instruments, ranging from simple obligations in minor sales contracts to traditional lending agreements (Chapters 8–11). Additionally, the book addresses specific contract types explored in other volumes. Investment contracts may serve as funding contracts for different parties, which will be elaborated on in Volume III. Contracts related to business acquisitions are also crucial and discussed in that volume. Furthermore, multi-party contracts are prevalent in corporate finance, encompassing arrangements like syndicated loans and central counterparties’ contracts, which will be examined in Chapter 12 and further in Volume III.