Indian negotiation relies on combination of relationship-based trust and formal verification mechanisms. Neither pure trust nor pure contract is typical; both together provide robust assurance. Relationship provides foundation: dealing with known parties, with community members, with connected networks creates trust. People who would not cheat strangers will not cheat those with whom they have relationship.
Verification supplements trust: documentation, contracts, third-party guarantees provide protection beyond relationship. Even trusted parties document agreements; even with strong contracts, relationship matters for implementation. Community reputation creates additional accountability: negotiation behavior affects reputation that affects future dealings.
The appropriate formality level varies by context—under-formalizing leaves parties vulnerable; over-formalizing may signal distrust. Implementation requires ongoing relationship regardless of contract; good faith interpretation and accommodation of unexpected situations depend on relationship that continues beyond agreement.
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