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David has signed six contracts with six different companies during 2018 to provide marketing
and business restructuring consultancy work. Each contract stipulates the compensation that
needs to be borne by David should he fail to deliver the job within the specified time. In return,
he will receive his full payment upon the delivery of the final reports to the companies.
At the moment, he has four assistants to help him to execute the job. David will monitor and
ensure that all reports are prepared according to the companies’ expectations. He provides the
equipment and tools for all his assistants. All of them are paid on the basis of jobs completed.
Required:
Determine whether David is exercising contract of service (employment) or contract for service
(business).

Answer 1

contract of service (employment)	contract for service(business).
It has an employer -employee relationship	it has an Client-Contractor relationship
Work is done as an employee	Contractor carries out business on their own account
Any risk will be borne by the employer	Any loss will be borne by the Contractor
For Assistance in the contract, the employer provides its own employee	Contractor will engage the man power according to the requirement
Employer bears all the expenses	Contractor bears all the expenses
Compensation in term of the salary	Compensation in term of the fees by adding margin to the total cost
Employer will monitor the work	The Contractor will monitor the work
Eqipments used in the project will be provided by the employer	Contractor will bring his own equioment for carryout the contract
Payment is generally monthly	Payment will be made generally on the completion of the work

in the given situation, David is exercising Contract for services(business), because-

1. He will bear the risk of non-delivery

2.He is monitoring the project and he will ensure that all reports are delivered as per the expectation

3. He will engage his own man power

4. Payment is done on completion

5.there is no employer -Employee relationship