10.2190/B53T-N0HX-W9BP-4HQX B53TN0HXW9BP4HQX 4 Leadership and the Psychological Contract 193 199 20020509 20020509 20020509 20020509 B53TN0HXW9BP4HQX.pdf http://baywood.metapress.com/link.asp?target=contribution&id=B53TN0HXW9BP4HQX 3 Harold Fuqua Jr. Joseph Cangemi Kay Payne Western Kentucky University, Bowling Green This article defines and describes the psychological contract. It explains the reciprocal obligations of employees and employers who psychologically agree to fulfill unwritten reciprocal obligations. It describes opportunities for change from old notions of psychological contracts to new ones. Violations and consequences of those violations of the psychological contract increase the likelihood of psychological withdrawal and sabotage in organizations. Trust is the key to making the unwritten, reciprocal, contractual agreement work.