Contract for service

Contract for service means contract for a job by self employed person. While he or she may hire others to carry out (or help) in the work, he or she is solely responsible for the satisfactory completion of the job.

Contract for service governs and regulates the relationship between contractor and client. There is no statutory definition of contract for service .In order to determine the nature of contract for service, it is necessary to apply the common law principles.

Contract for service is also called self employment and it is based on the business to business contract between buyer and supplier. Contract for services come to end when the job/task is completed. Contract for service can also come to end if the terms of the contract are breached. The main elements of a valid contract for services (self-employment) are:

• the intention to enter into legal relations
• an offer (usually of work) and its acceptance (an agreement)
• Consideration (for example, in return for performing work the worker receives payment).

There is a line of demarcation between contract of service and contract for service. The main difference between contract of service and contract for service is that

• An employer –employee contract is called contract of service.
• A contractor – client contract is called contract for service.

In a contract for service, there is no question of any employment involved because contract for service does not grant any employment rights and it does not constitute any relation of employment. In contract for services the contractor is considered the owner of the business and he can hire anyone to complete the task.

In contract for service the contractor is sole responsible for the satisfactory completion of the job. A contract for service is an agreement between a self-employed contractor and end user to carry out a particular job or provide a service. Contract for services imposes some duties on client and contractor such as

• It is the duty of the contractor to provide services to the client as stated in contract
• It is the duty of the contractor to complete the project as stated in contract
• It is the duty of the contractor to provide such standard of services to the client as stated in contract
• It is the duty of the client to pay the contractor as stated in contract
• It is the duty of the client to provide the safe working environment to the contractor

Related source: Click here to obtain contract for service

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