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Journal Article
| Harvard Business Review
|
May 2009
When Contracts Destroy Trust
by
Deepak Malhotra
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Abstract
Contracts exist to foster trust, but they can actually do the opposite. Overly detailed contracts leave no room for spontaneous acts of kindness to create goodwill between parties; too-rigid contracts leave parties unable to respond to the unanticipated; and, strangely enough, incentives can end up being just plain insulting.
Keywords: Contracts;
Negotiation;
Trust;