The psychological contract and implied contractual terms

4400 Implied Terms and Interpretation in Contract Law

This chapter examines the economic arguments for textualism and contextualism, the two primary methodologies used by courts to determine the intentions of contracting parties with respect to their performance obligations. Textualism, which is rooted in the idea of complete contracting, calls for a more restrictive approach to implied terms and interpretation than contextualism, which is rooted ...

Contract Incompleteness , Contractual Enforcement and Bureaucracies ∗

This paper explains frequently observed coexistence of deficient property rights and heavy bureaucracies. We suggest that there is a specific role for bureaucracies in environments with insure property rights. In such situations, bureaucracies substitute for enforceable contracts. We study irreversible investment in an asset over which property rights are unclear, and model the property rights ...

The Effect of Relationship Lending on Loan Contract Terms

This paper investigates the effect of relationship-lending on loan contract terms, especially on the interest rate, loan value, and collateral requirements. For this purpose, data on 4850 loans granted by a bank in 2016 is employed. Our estimations show a negative and significant relationship between the interest rate and quality and quantity of borrower-lender relationship. Furthermore, there ...

Implied Contract and the Law of Literary Property

Forced Employment Contract Change and the Psychological Contract

Purpose: To explore the implications for all employees’ psychological contracts of a forced change from permanent to temporary employment status for some employees within an organisation. Methodology/Approach: A random sample of 30 employees, stratified by employment status was selected. Each employee undertook a structured card sort of possible emotional responses to change followed by an in-d...