Status: General definition of a contract
A contract is basically an agreement (or promise) made between two or more parties which creates an obligation to do, or not do, something. A contract can be written, oral, implied or a combination of these.
All contracts comprise of:
- an offer from one party, and
- acceptance of the offer from the other.
The contract is formed when the offer from one party to make the contract is accepted by the other party.
For a contract to be valid and enforceable certain conditions must apply (NMWM04040).
For a person to be a worker (NMWM05020) and qualify for minimum wage they have to be working under a worker’s contract. A worker’s contract is formed when there is either;
- A contract of employment (NMWM04050), or
- Any other contract (NMWM04060) to personally perform work for another party (who is not a client or customer of an individual acting in a genuine self-employed capacity (NMWM05060)).