32 lines
1.2 KiB
Markdown
32 lines
1.2 KiB
Markdown
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---
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entity_slug: contract
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entity_type: Institution
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vsm_system: S2
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type_rationale: A contract is a socially constructed rule system that establishes
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formal governance structures for mutual obligations and rights between parties,
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making it fundamentally an institutional framework rather than a physical entity
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or process.
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vsm_rationale: Contracts function as coordination mechanisms that provide the structural
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framework for exchange relationships and help prevent oscillations in economic interactions
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by establishing clear mutual obligations and rights.
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classified_at: '2026-02-23T10:56:38.589613'
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---
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# Classification: Contract
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## Entity Type
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Institution
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## VSM System
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S2
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## Type Rationale
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A contract is a socially constructed rule system that establishes formal governance structures for mutual obligations and rights between parties, making it fundamentally an institutional framework rather than a physical entity or process.
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## VSM Rationale
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Contracts function as coordination mechanisms that provide the structural framework for exchange relationships and help prevent oscillations in economic interactions by establishing clear mutual obligations and rights.
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