Thinking about contracts may easily remind us of complicated and difficult-to-understand documents. Documents that easily come to mind are “terms of service” or contracts received, for example, from insurance. Basically, these are all contracts where one side seeks to protect itself against all the eventualities they’ve already experienced or imagined possible.

These types of contracts exist but need to be considered as somewhat special cases. The number of contracts we are confronted with regularly is far larger but may often not be seen as contracts.

Take a handshake, for example. It’s a ritual that also means that one will deal fairly with one another. Think, for example, of all the handshakes that are exchanged prior to a competition. Another use of the handshake is when people agree to do something and seal that agreement, or contract, with a handshake.

Contracts can also be considered to be all the ideas and tasks people talk about and then agree on.

The difference between these simple contracts and the complicated contracts as used for terms of service, for example, is in the effort made to detail every possibility and establish as much protection as possible.

What the used contract then tells us is how much attention the people involved decided to give risks and trust. Both belong together, as trust exists through an understanding of the risk involved and the protection offered.

Whatever type of contract is chosen, I’d argue that the quality of the contract can be found in the attention it gives to the relationship and the ability to maintain it. This can only happen if the contract helps us to know what is within the scope of the relationship and what isn’t. But also, what happens when something unplanned occurs.

The latter often is underestimated.