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LAW 529 (123)
Chapter 4

Chapter #4-The Employment Contract.docx

3 Pages

Law and Business
Course Code
LAW 529
Pnina Alon- Shenker

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Chapter 4 The Employment Contract Every employment relationship is based on a contract regardless of whether the contract is oral or writtenUnder the common law 3 things necessary to create contract 1 Offer 2 Acceptance of the offer 3 Consideration something given or promised in exchangeA binding legal employment is created therefore whether there is a job offer covering essential terms an acceptance of that offer and the promise to exchange wages for work performed the consideration binding is writtenOral contract also contains the 3 elements WRITTEN EMPLOYMENT CONTRACTS Advantages of a written Employment Contract 1 Reduces risk of misunderstandings by specifying the rights obligations and expectations of both the ER and the EE a written contract reduces the risk of misunderstandings that could lead to disputes and lawsuits later on 2 Addresses contentious issues early a written contract encourages the parties to deal with potentially contentious issues early in their relationship when they are usually positively disposed to one another3 Reduces uncertaintyif a dispute arises and the parties take the matter to court a welldrafted written contract provided the court with a clear record of the terms and conditions of employmentImplied TermsWhere the issue in dispute was not addressed in an oral contract or was left out a written contract a court imports IMPLIED TERMS where the court considers what terms the parties would likely have agreed on had they put their minds o the issueCourts have developed a set or standard implied terms that reflect what they perceive the parties rights and obligations ought to be o Example in the absence of an express term relating to the contracts duration and termination notice the courts will find that the contract implies an obligation on the ER to prove the EE with reasonable notice of termination in the absence of serious misconduc
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