Question

Which of the following are reasons why employment contracts are incomplete? Multiple answers: You can select...

Which of the following are reasons why employment contracts are incomplete?

Multiple answers: You can select more than one option

A

The firm cannot contract an employee not to leave.

B

The firm cannot specify every eventuality in a contract.

C

The firm is unable to observe exactly how an employee is fulfilling the contract.

D

The contract is unfinished.

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Homework Answers

Answer #1

Options A, B, C

the firm cannot make sure that the employee does not leave the company because there is individual rights work so only the company can make a bond for the losses of the company.

It is not possible to specify everything in the contract as the work may be dynamic and some of the things can change because of technology and other factors which are not predicted at the time of contract.

The firm cannot fully observe the employee.

The contract is finished, but the objective is not finished, so it is incomplete.

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