Requirements For Legally Enforceable Contract Notes

Labour Law 24th March: Requirements for Legally Enforceable Contract: 1. Agreement on the basis of an offer and acceptance. Law deals not only with legal rules, but how you prove things - Remember evidence of offer and acceptance. How can I prove that there was offer and acceptance? (a) Who has burden of proof? Plaintiff has to prove it. Plaintiff would be the employee. (b) To prove it - have to assess how your client is going to present as a witness. Through direct evidence. Each of the parties will make a witness statement exchanged before the hearing, but at the hearing the employee and employer will both present direct evidence. If your client is not particuarly reliable, may need to consider if you want them as a witness. There will be cross examination. 2. Intention to create legal relations. Most of the time this is not a problem in the employment law sphere, because in commercial relationships normally there is a presumption of intention. Issue will normally arise when people are working for other family members. Issue will be whether there is an intention to create legal relations or just helping out family. 3. Consideration. Promise to work in exchange for promise to pay. Payment can only be in money, but it can be in the form of wages, commission, or payment based on piecework (amount produced). Consideration has to be agreed by the parties. Wages or salary have to be agreed. This is one of the elements that needs to be specified in writing in the employment agreement. Have to be above minimum wage - Minimum Wage Act 1983. If the parties have agreed to a wage lower than minimum wage and you are over 16, then this is illegal and the worker can apply for wage arrears. Can only work for less than the minimum wage if you are under 16, and if a labour inspector certifies that someone is significantly and demonstrably limited by disability there is a possibility of paying less than minimum wage. Wages Protection Act: Wages have to be paid in money not in items. Employers may not deduct money from a worker's wages without written permission. Often this will be set out in the worker's contract. Important because employers may try to take money out of employee's pay package if the employee damages something, for example. Often this issue arises after termination where the employer is making up the final pay and the employer deducts for e.g. wear and tear on uniform. The way to get the money back is ask nicely and if the employee doesn't give it, you can sue them for it. 4. Certainty. The contractual terms must be sufficiently certain. Employment Relations Act many of the key terms are required to be in writing. This goes a long way to achieving certainty. Not necessary for everything to be fixed in order to have a valid contract, e.g. starting date. Section 65 ERA sets out the main things. 5. Reality of consent. Consent to the terms of the agreement has to be: 1. Freely given by the parties. If not, the contract is invalid or open to cancellation. The court may alter the contract if the party applies for that. 2. Real 3. The contract can be negated if there is mistake. Has been tried under the Contractual Mistakes Act but never happened. Paul thinks it is because nobody understands it. Not very many cases on it. 4. Much more common than mistake is simply being cheated: fraud or misrepresentation.

Buy the full version of these notes or essay plans and more in our Labour Law Notes.