ABSTRACT
The term ‘psychological contract’ is something of a contradiction. If we have a contract with someone, this refers to a precise and legally binding arrangement we have with a person or an organisation involving the exchange of money for an object or a service. Examples of this are when we contract to buy a house, fly with an airline or sign up for a new credit card. This is completely different from something psychological which relates to our mind and therefore is intangible – such as the picture we have in our heads about an experience or a forthcoming event, or the feelings we have towards another person.
