Employment contract - what is it Flashcards
Module 2
What are the key elements of a contract?
Intention, offer, acceptance, consideration, legal capacity, and legality. Some contracts may also require a specific form.
What can prevent a contract from being enforceable?
Mistake, misrepresentation (innocent, negligent, or fraudulent), undue influence, and duress.
What are the rules regarding an offer in contract formation?
- Must be communicated and received.
Only the person to whom it is made can accept.
May have a time limit.
Can be revoked before acceptance, with revocation communicated.
When is acceptance valid in contract formation?
Acceptance must be communicated as requested, unconditional, and cannot be silence unless pre-agreed. If rejected, the offer cannot be accepted later.
What is consideration in a contract?
Something of value exchanged between parties (e.g., wages for work). Past consideration and existing entitlements under a contract do not qualify as consideration.
How does legal capacity impact contracts?
Minors and those with impairments may have voidable contracts if non-essential. Employment contracts are enforceable against minors unless terms are unfavorable.
What is the difference between illegal and unenforceable contracts?
Illegal contracts violate criminal law and are void. Unenforceable contracts may violate statute law or public policy without criminal penalties (e.g., restrictive covenants).
Is a written form required for employment contracts?
No, verbal contracts are enforceable, but written contracts are recommended to clarify terms, reduce disputes, and include employer-friendly clauses.
What are the challenges in modifying employment contracts?
Both parties must agree and receive new consideration. If not, the employer may need to terminate and offer a new contract.
Who is an employee, and why does it matter?
Employees enter contracts for wages, benefits, and protections. Their status impacts regulatory standards, tax treatment, and employer liability.
What legal tests determine employment status?
- Control test: Level of employer control over the worker.
- Organization test: Worker’s integration into the employer’s business.
- Fourfold test: Examines control, tool ownership, profit chance, and risk.
What are the categories of workers?
- Independent Contractor: In business for themselves, no employment laws apply.
- Dependent Contractor: Economically reliant on one client, some employment laws apply.
- Employee: Fully covered by employment laws.
What factors indicate a worker’s status as an employee?
- Set working hours and wages by the company.
- Use of company-owned tools.
- Supervision and inability to decline tasks.
What are the pros and cons of crowd work for employers?
Pros: Flexible, cost-effective workforce. Cons: May lack specialized skills and require competition to maintain low costs.
How does the common employer doctrine protect employees?
Ensures corporate structures do not defeat legitimate entitlements, holding all entities in a corporate group responsible as a single employer.
What are common tort issues in the recruitment process?
- Fraudulent misrepresentation: Employer’s false promises to candidates.
- Negligent misrepresentation: Breach of duty of care during recruitment.
What does human rights legislation regulate in recruitment?
Prohibits discrimination based on protected grounds (e.g., religion, sex, disability) and restricts inappropriate interview questions.
