An employment contract is most likely to be successful when it
A) provides the proper incentives so as to be self-enforcing.
B) can be legally defensible.
C) can be specific about all tasks required of the employee.
D) includes legal penalties if either party abrogates the contract.

Question

Quizplus · Accepted Answer

Providing proper incentives in an employment contract ensures that both parties are motivated to fulfill their obligations without the need for legal penalties or excessive micromanagement. This creates a self-enforcing contract that is more likely to be successful. While legality and specificity are important factors, they are not sufficient on their own to ensure success.

An Employment Contract Is Most Likely to Be Successful When