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Cultural contracts theory was created by Ronald L. Jackson II in 2002 to respond to the ongoing discussion about identity negotiation throughout research in the humanities and social sciences. While it might seem obvious that this theory emanated from sociologist Charles W. Mills's 1997 racial contracts treatise, the author was unaware of Mills's work until nearly 3 years after the cultural contracts theory was established. The theory actually has its roots in Jean-Jacques Rousseau's 1762 explication of the social contract, which was a moral and philosophical essay on the implications of national sovereignty and the maintenance of social order. This early document spawned a lot of debate about freedom, independence, autonomy, and citizen obligation to social order. The cultural contracts theory is aligned with Mills's theory to the extent that it is aware of and responsive to power inequities that destabilize or imbalance interaction and ultimately instigate cultural identity negotiation.

Jackson actually thought about the contracts metaphor when buying a home. He noted the similarities between communicating one's preferences in important life negotiations such as buying a home and negotiating one's identity with a stranger whom we expect to behave or proceed in a certain way. In these kinds of interactions, one's values, norms, beliefs, and patterns of communication—indeed one's culture—are revealed within the encounter. Likewise, people negotiate differences in opinion, style, and orientation in these sorts of transactions. Whether two people are meeting one another for the first time or have been acquainted for years, they must still coordinate their relationship by understanding the other's culture. Just as in a home-purchase contract, everyday communication contains “small print,” with hidden features of a relationship. In identity negotiation, the small print can be about hidden motives but is often about hidden insecurities that come as a result of past experiences. All of this complicates the encounter and is exacerbated in intercultural interactions where race, gender, and class all come to bear.

Cultural Contracts in Operation

Drawing from the literature on identities as well as previous studies conducted on how intercultural relationships are formed and sustained, Jackson asked, what about one's identity is actually being negotiated, and how does that happen? When people interact, their identities will overlap to a greater or lesser extent. The co-orientation process that occurs in interaction can be seen as identity negotiation, which involves varying degrees of cooperation. The resulting agreement is a “contract” that specifies the rules and conditions for mutual identity management. These contracts function to preserve, protect, and define the self as it meets up with others.

At the core of cultural contracts theory is the metaphor of negotiation. Identities are not simply conceded while communicating; rather, there is an attempt to hold onto and negotiate aspects that define who one is. This process permits at least two options: One can elect to assimilate or accommodate, or one can negotiate the relationship anew by signing another contract.

What happens if both interactants see themselves as “leader”? What if there are cultural differences in their definitions of leadership? What if both want to enact their identities in response to another? These are all critical questions. In every communication encounter, people are communicating their worldviews and what they value, and they must continuously engage this process in juxtaposition with others.

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