Question

Contracts are essential for business, and will be an integral part of PI operations, so the owners now want to center their attention on contract law.   Each of the owners have had experience with contracts in their own businesses, and appreciate the probable risks and liabilities associated with contracts.

To reduce risks and liabilities associated with contracts, the owners want all contracts to be written, with specific, complete, and clear terms. For example, contracts with agents, such as employees and independent contractors, must define rights and responsibilities of the parties and the nature and scope of agents’ authority. Also, since employees and/or independent contractors will be performing cleaning services on clients’ properties, these contracts should consider bonding.

They know that there are various types of contract agreements that are relevant to PI. For example, the company will have individual contracts with employees, independent contractors, and other agents who will represent the company. Also, the company will engage in sales contracts with other businesses, and sales contracts between businesses and consumers and clients. Furthermore, PI will use electronic contracts, or e-contracts, in conducting online business transactions.

Although the PI owners have all had experience with contracts, they understand the importance of having written standard form contract for the business. They also recognize that vague or incomplete contracts can create risks for the business. The PI owners have asked BCA to create some sample contracts that might be used in their new business.

You are tasked with creating sample draft contracts for PI. You, Pat, Gale and the PI owners will discuss the samples at the next meeting with goal of finalizing standard contracts for use in PI.

As the first contract proposal, draft a contract between PI and its painter-employee. The contract should address, in part, the following terms:

1. duties to be performed by painter-employee

2. pay for painter-employee

3. work hours

4. terms of payment for overtime or holiday work, if any

5. sick leave

6. vacation

7. training for painter-employee, if any

8. length of contract

9. bonding for painter-employee

10. periodic performance evaluation and how it will be conducted

11. termination of contract.i.e., notice for termination, etc.

The contract should include all terms necessary to be a valid, enforceable contract, but should be simple, straightforward and address only the terms listed above.

https://saylordotorg.github.io/text_business-law-and-the-legal-environment-v1.0-a/s11-introduction-to-contract-law.html

Answer 1

Contract between PI and the painter Employee

The contract with the PI and painter employee is legally binding with the consensus of both the parties to ensure both the parties follow the contract without fail and any miss in the contract shall be settled in the court of law

1. The Painter employee is supposed to perform the task given by the PI team and ensure all the deliverables are up to the mark and should satisfy the customer

2. The painter will be made based on what is agreed $60 per week to the employee upon the completion of task assigned. Any deviation in the task assigned will be deducted based on the amount of task performed

3. The actual working hours will be 12 hours per day and employee is supposed to work more when there is a requirement

4. If any over time performed, the employee will get 10% of the actual amount paid per day for every hour and working on any holiday, the employee can take the benefit of compensatory off and for the working day painter will be paid based on what he gets per day actually

5. In a year employee can avail the sick leaves of 10. If the number of sick leaves crossed more than 10, the employee will go on loss of pay

6. Every year employee’s account will get 20 days of vacation time which can be availed anytime during the year and should take prior approval before going on leave.

7. The training to the employee will be provided during the initial days of joining and all the requirements to do the task will be given

8. The contract is valid for 1 year and every year the contract gets renewed. In between the contract if the painter wants to quit, the person will need to pay for 2 month salary and quit

9. The bonding will be done on the government letterhead and will be signed by both the parties

10. The performance evaluation will be made once a year and there will also be an evaluation of the performance every quarter to convey the message on how the person is performing which determines the percentage of salary hike as well.

11. The termination of the contract will happen when the employee quits the organization during the end of contract. Termination cannot happen in between the contract is running.