We live in a world of contracts. Only a few are written, rest others are unwritten. Unwritten contracts could be oral or behavioral. Verbal promise is an oral contract, whereas getting on a bus/metro is a behavioral contract (by getting on a bus, you inherently agree to pay the fare for the distance you travel). If you carefully study the types of contracts that you abide by everyday, you will be surprised on how many behavioral contracts (also called psychological contracts) you follow in a single day.
Since business contracts are mostly formal and written, we count them to be more significant than other types of contracts. Another reason could be the visibility of written contracts in front of our eyes in the form of “written pages”. On the other hand, since psychological contracts are greatly influenced by culture, customs, and day-to-day practices, we perceive psychological contracts not in written pages, but in a “space” in our mind. Consequently, we often unconsciously execute psychological contracts based on whatever exists in our “contract space” as we perceive them to exist.
(to be continued. . .)