No contract with business partner - what are my rights?

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wondering

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I've been working with someone over a few years. The tasks haven't been often, and the amounts paid are low as they are small tasks.

There's no legal contract between us, in the sense of I didn't sign anything, and there was no formal agreement. There's an amount agreed beforehand (via email) which is paid after.

My question is:
In the event of a dispute between us, do I have any options, or do I have no rights based on the above ?
For example
- I agree to do something, then am not paid
- the description of what's to be done is different than the reality and the payment doesn't cover it.
 
wondering said:
I've been working with someone over a few years. The tasks haven't been often, and the amounts paid are low as they are small tasks.

There's no legal contract between us, in the sense of I didn't sign anything, and there was no formal agreement. There's an amount agreed beforehand (via email) which is paid after.

My question is:
In the event of a dispute between us, do I have any options, or do I have no rights based on the above ?
For example
- I agree to do something, then am not paid
- the description of what's to be done is different than the reality and the payment doesn't cover it.
Click to expand...
I don't understand. Are you an employee of this person or do you pay your taxes via self-assessment?
 
wondering said:
My question is:
In the event of a dispute between us, do I have any options, or do I have no rights based on the above ?
For example
- I agree to do something, then am not paid
- the description of what's to be done is different than the reality and the payment doesn't cover it.
Click to expand...

Your dispute will be governed by whatever contract you have, written or verbal, although the latter is generally not worth the paper it is written on;)! The email would inform the resolution but if the amounts are small there are not a whole pile of options to settle any such dispute.

If you agree to do something and don't get paid then there has been a breach of contract. You can pursue him for payment, but again, if the amount involved is small there is very little you can do. You have no employment rights in such a scenario. If the description is different from the reality then you really shouldn't proceed without renegotiating the price. It's very hard to retrospectively negotiate a job after it's done.
 
24601 said:
Your dispute will be governed by whatever contract you have, written or verbal, although the latter is generally not worth the paper it is written on;)! The email would inform the resolution but if the amounts are small there are not a whole pile of options to settle any such dispute.

If you agree to do something and don't get paid then there has been a breach of contract. You can pursue him for payment, but again, if the amount involved is small there is very little you can do. You have no employment rights in such a scenario. If the description is different from the reality then you really shouldn't proceed without renegotiating the price. It's very hard to retrospectively negotiate a job after it's done.
Click to expand...
It is small, but it's more about the principle for me in the situation (It's still unfolding and may be ok in the end). As suspected, I'm not in a strong position and may be best to leave it if it comes to that.
Thanks, I appreciate your reply.
 
A contract does not always have to be in writing for it to exist. You look at the facts and the conduct of the parties.

Generally, I would suggest that the absence of a formal contract (or partnership agreement) is most unhelpful in the event that a dispute arises.
If a dispute arose what would be your status as regards this other party? Are you actually a partner or an employee or an independent contractor?

This could be problematical in either direction. In the event of a dispute you might not be able to assert rights or you might find yourself inadvertently saddled with a liability.

BTW there are a number of tests for the existence of the master / servant [employer / employee] relationship. The principal test is that of control i.e. does the "employer" retain control over your method of working as distinct from defining the end goal of your task.

Offhand, on the limited information, I suspect that you look nearer to being an independent contractor. IMHO it would be better to get this regularised for the avoidance of ambiguity and potential trouble.

Think about it this way. If a legal dispute arose and you were in the witness box how would you explain your status to the judge and with what clarity and certainty ?
 
You may have "created" a partnership by operation of law, and your business relationship may be governed by the Partnership Act 1890 if you do not have a written partnership agreement.

The big question is: How have you been accounting for profits to Revenue?

Jim Stafford
 
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