BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -In economics, implicit contracts refer to voluntary and self-enforcing long term agreements made between two parties regarding the future exchange of goods or services.

Detailed explanation-2: -An implied-in-fact contract exists based on the behavior of the respective parties when, for example, one party enters a hair salon, sits down in a chair, and asks for a haircut, which the other party then provides. By asking for the haircut, the first party has implicitly agreed to pay for the haircut.

Detailed explanation-3: -Abstract. The origins of implicit-contract theory lie in the belief that observed movements in wages and employment cannot be adequately explained by a competitive spot labour-market in which wages are always equal to the marginal product of labour and the labour market is always in equilibrium.

Detailed explanation-4: -An implied contract is an agreement that an employer enters into with an employee based on their previous interactions and the general conditions of employment.