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We extend the property-rights approach along three dimensions. First, we introduce a distinction between ownership and control, arguing that they affect different aspects of the negotiation. Second, we allow for break-up in the negotiation. Third, we determine the endogenous formation of the ownership and control pattern. We introduce a pre-bargain stage where a principal designs an initial offer to an agent to set the governance of their relationship. We study the incentive properties of ownership and control patterns when the principal aims at providing the incentives to exert an effort or to induce a truthful revelation.