Relational contracts:
A)Tend to be less voluminous and legalistic
B)Rely on mutual trust between the parties
C)Both a and b
D)Only work in Japanese business culture

Question

Quizplus · Accepted Answer

Relational contracts are characterized by an emphasis on mutual trust and cooperation between the parties, rather than strict legal obligations. They are often less detailed and formalistic than transactional contracts. While relational contracts are often associated with certain cultures, such as the Japanese culture, they can be used in any context where there is a high degree of interdependence and long-term relationships between parties.

Relational Contracts