The document discusses the psychological contract, which refers to an individual's beliefs about the terms of their implicit agreement with their employer. It notes that misunderstandings are common since the contract is perceptual and dynamic. Violations can be inadvertent from different interpretations, from disruptions making the contract impossible to fulfill, or from one side breaching the agreement. Sources of violations include recruiters overpromising, managers saying one thing and doing another, and lack of support or follow through from others. Broken contracts can lead to outcomes like decreased trust, satisfaction, productivity, and increased turnover. The document suggests managing the contract by providing realistic expectations, frequent discussions, feedback, and accounting for changes over time.