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Self Employed Australia

"Everyone needs an Advocate"

“Everyone needs an Advocate”

  • Current Advocacy
    • Reforming the ATO
    • Fair Contracts
    • Fixing Disputes/Prompt Payment
    • The ‘Gig’ Economy
  • Past Advocacy
    • Submissions
    • Defending ABN Contractors
    • Work Safety
    • Independent Contractors Act
    • Owner-Drivers
    • International Labour Organisation
    • Independent Contractors: How Many?
  • SEA Submissions
    • Submissions
    • Independent Contractors: How Many?
  • NotAboveTheLaw
    • Robodebt
    • Hotel Quarantine 2020
    • Chemical Fire 2019
  • Be Your Own Boss

What is a contract?

For employment or independent contracting to exist, a contract must first exist. Contracts only exist if specific human behaviours are evident. For example, if two people are standing in the street talking, they have a human relationship but not a contract. The same two people can create a contract between themselves. No legal person need be present and nothing need be on paper.

For a contract to exist, five key elements must be displayed by the parties:

  • An intention to create a legal relationship.
  • Clear terms understood by all parties.
  • Offer and acceptance.
  • Consideration. This is the wide legal idea of payment, which may involve money, bartering or something else!
  • Genuine consent by all parties.

If the court finds that any one of these elements is missing, then it will declare that no contract, in fact, exists.

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