The article explores how contracts between a boss and an employee are affected by renegotiation, secrets, and moral issues. They create contracts that can't be changed easily, even when the employee knows more than the boss. The best contracts make the employee worse off. Making the employee's job easier can make things worse for the boss. The contracts are honest by allowing sudden changes in reports. The best reports fix themselves without being told. The article also talks about contracts where some things are shared and when the employee can leave. This shows how secrets, renegotiation, work effort, and honesty all interact.