Social Contract Theory
Obligations rest on agreements that people would rationally accept; the practical test for any rule, price or policy is whether those affected would agree to it from behind a veil of ignorance about their own position.
An everyday example
Designing a cancellation policy you would accept if you did not know whether you would be the company or the customer.
What it can cost you
Rules that only the powerful would agree to; 'consent' extracted from people who had no alternative.
Warning signs
- Only the stronger side would sign this freely.
- Consent was the only option offered.
One thing to do
Before imposing terms, ask whether an informed person who might be on either side would agree; if not, the terms are extraction, not contract.
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