Liabilities of Contractor, Employer Essay Example | Topics and Well Written Essays - 2500 words

Liabilities of Contractor, Employer - Essay Example The reason for the strong position of the employer E is he terminated after the contractor stopped delivering. The contractor can be considered as an employer for his sub contractor. The repudiation of the sub contract by his sub contractor will make his sub contractor liable to him. This does not entitle him the right to stop the delivery of work to his employer. By stopping his delivery of work to his employer E, he not only made himself liable to employer but also gave a chance to the employer to terminate the contract. In the other cases, if the employer terminates the contract, he is not permitted according to law to award the work for another till 6 years. But that is not in the case of contractor's liability to the employer. According to L. Jaynes in the seminar about global conditions on contract, the liabilities of employer and contractor were listed out according to various clauses that impart liability on the party, who breaks the contract or who does an action that imparts liability. The concept of liability will be thought upon when the contract was terminated. This termination according to conditions of global contract depends on four clauses of the conditions of the contract. They are clause 15, 16, 17, 19.1 According tClause 15 deals with termination by employer, clause 16 deals with suspension and termination by contractor, clause 17 deals with risks and responsibilities, clause 19 deals with force majeure. According to clause 15 the termination by the employer is due to the failing to proceed or prosecute with works, subcontracting the whole work, assigning the contract to the third party without permission, not complying with the instructions of the engineer of the employer, becoming insolvent. In the prescribed case of M and E in this paper, subcontracting the works, failing to proceed with the works, failure to comply with the instructions of the architect forced the employer to terminate the contract. In sub clause 15.2 (b), it was described that if the contractor abandons the works or demonstrates the intention of discontinuing the performance, it will provide the ground for the termination of the contract by the employer. In the case of contractor and employer the contractor cannot stop delivery of the work for his employer due to the repudiation of the contract by a sub contractor. In this clause the contractor is employer for that sub contractor and he can terminate or take action on that sub contractor. Methodology of analysing the legal problems: In this case the methodology followed is to compare the situation with the principles and the provisions of the law and thus analysing the situation about liability of M and E. In the above case of M and E, instead of taking action on the sub contractor N, M stopped delivering to his employer, which provided ground for the employer to terminate the work. This clause demonstrates the conditions for the employer finding a ground for the termination of the contract. The prescribed case for this paper is suitable for the termination of the contract by the employer. This makes contractor liable to the employer and if employer takes any legal action he must bear the consequences. There is no chance for the contractor to compensate the loss he