While a “Contract” is an agreement between two or more parties to perform a specific function, there may be instances where as essential and specific aspects of the said function is required to be performed by a separate individual or organization who need not necessarily be a party to the “Contract”. In such situations, the individual or the organization performing the specific aspect would enter into a Contract with the party for whom the service is being rendered. It has to be noted that, there are two Contracts and the second Contract depends on the existence on the first. In such situations, the first contract is referred to as the “Main Contract” and the second as the “Sub-Contract”.
(i) Can the employer make direct payments to the nominated sub – contract and explain ypur answer about the payment procedure.
(ii) Compare and contrast Nominated sub-contractor and Domestic sub-contractor under the following terms.
c) Negotiation of terms
d) Payment & Approval
e) Contract between the parties