Question

Most people rely on implicit contracts in their everyday lives. Can you give some examples? What alternatives did you have to achieve the desire outcome?

Answer 1

It is true to say that most people rely on implicit contracts in their everyday lives. This is done so that they can reduce the cost. This is a very common method for reducing the cost.

For example there is a bag manufacturing unit. The manager's sister is a fashion designer. Then the manager would get the design of the product approved by her sister. This is an example of implicit contract.

Or for example, there is a good supply unit. The manager's son is going out and the manager hands him over some food to deliver it while going out. So this is also an example of implicit contract.

There are various alternatives can one can opt to achieve desired outcome. These alternatives can be
1. Hiring of labour
2. Outsourcing the total work
3. Contracting the work
4. Outsourcing a part or parts of work etc.