Insult: The contract killer

05/6/2009 | Harvard Business Review

An airtight contract is supposed to protect you from risk, but a contract that is too rigid can erode trust and magnify difficulties when conditions change. "Trust requires that parties see each other as ethical and well-intentioned," writes Harvard Business School professor Deepak Malhotra. "Overly detailed contracts that codify every potential interaction can undermine trust by preventing spontaneous displays of good intentions."

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