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Does this constitute a contract? Advice needed....

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    #11
    Although it would be ideal to have a contract in writing it is not absolutely necessary - a binding obligation can be established verbally or by implication. The question is whether this would be a contract for services or a contract of service; one will establish you as an employee and one will not under the terms of employment law. It sounds as though the client has significant control over what you do - I assume that when you worked from home it was necessary for you to obtain permission to do so? Also, as you have personally accepted the work (presumably you couldn't send someone else in your stead) and the client is obliged to pay you for it there is mutuality of obligation. So, with regard to your security, you may have a case for unfair dismissal should the contract be terminated without reason before the agreed date. However, from an IR35 point of view both these things would count against you. Ultimately, as a contractor, you can either opt for security and work inside IR35 or you can accept that you have no 'employment' rights whatsoever and negotiate your working practises so that you can work outside IR35 - unfortunately you can't have both.
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      #12
      Originally posted by TykeMerc View Post
      Offer - You offer your services for a rate
      Acceptance - The client says yes
      Consideration - The client pays (this can be in full or staged payments over a period)

      It's not necessary to have lots of terms and conditions, but it can be pretty silly for either party or both parties if there aren't any.

      It would appear from your post that an offer was made and accepted and some consideration has been made, it could be argued from your first post that no matter what, you're entitled to charge £40k over 10 months and the client can't terminate the contract, nor can you.

      Admittedly this is very simplistic based on what you posted.
      I am an accountant not a lawyer but we do get a basic training in contract law. From memory, an acceptance is defined as "an unconditional assent to all the terms of the offer.". The email received was "subject to..." so wasn't unconditional. It would therefore depend whether or not "all the required information relating to your self employment status" was submitted to them.".

      There will be all sorts of other legal anomalies which I am not qualified to comment on such as whether or not the contract had any notice period etc.

      Puma

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        #13
        Thanks again for the helpful advice, everyone.

        I didn't go into this with my eyes closed, I have consulted an accountant, been doing monthly accounts as per his recommendation, opened a business account, arranged Public Liability Insurance, etc.

        Tykemerc, in answer to your questions:

        1. I'm invoicing direct.
        2. That email is all I have
        3. I'm set up as a sole trader

        I'm very interested in what you and Moscow Mule said about IR35 perhaps not being relevant to my situation. Also about what Tyke and Lisa wrote about whetheer the email does in fact from some kind of contract.

        I'm meeting with my manager next wek so will try to perhaps get a proper contract for providing my services drawn up, which could mention working patterns so that we are both clear about what to expect from this.

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          #14
          Ok, Sole Trader, invoicing direct, forget IR35.

          You've invoiced and been paid a couple of times on the basis of the agreement, I think anyone reasonable would call that a contract.
          As I said earlier a contract doesn't have to be riddled with terms and conditions or be written in legalese for that matter or even be written down come to that.

          It's up to you if you agree an amendment to the (very) basic contract you have to embed terms and conditions, just be careful what you agree to.
          Last edited by TykeMerc; 4 August 2010, 11:13.

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