Jamal Awil

← Trust and Trustworthiness

Contract enforcement substitutes for, not creates, trust. [definitional]

If I trust you to act on my behalf, I set myself up for the possibility of disappointment, even severe loss. To avoid that possibility, I might try to find institutional backing to get you to do what I trust you to do. This might be easy to do. For example, if I wish to get you to pay in several installments for the work I do for you or for your purchase of my car, in many societies I can propose that we sign a legally enforceable contract. Now you are faced with the likelihood of real costs if you renege on doing what I have relied on you to do. If the only reason you comply with our agreement is the threat of contract enforcement, then ours is finally not a trust relationship.

DEFINE: Distinguishes genuine trust from compliance driven by institutional enforcement threats.

Russell Hardin, Trust and Trustworthiness, loc. 251