The notice relates to the time a party makes available to another party if it wishes to terminate its obligations under the agreement before the agreed end date. The purpose of the communication is to enable the service provider to find another job or client to find a replacement service provider. In most jurisdictions, the law does not provide independent contractors with the same minimum termination protection as is usually available to workers (unless the disclosure is expressly provided in the agreement). However, courts may send a notification (or payment instead of termination) to an independent contractor if they can prove that he or she was economically dependent on the client. Under these conditions, the courts may impose reasonable notice or damages. Peter Pan`s Backpacker Adventure Travel Pty Ltd v Eye Jam Interactive Pty Ltd  QSC 227 – Peter Pan`s Backpacker Adventure Travel Pty Ltd (Applicant) has commissioned Eye Jam Interactive Pty Ltd (Respondent) to develop, develop and integrate a software system for the applicant`s business. No formal contract was signed, but it was agreed that the respondent should pay $95 per hour plus GST. The applicant paid the respondents a total of $1,587,398.97 for a two-year fee. The plaintiff then terminated the payment of the respondent`s invoices, believing that the software should have been completed after two years. On the basis of expert evidence that the respondent should have completed the development of the software for half the hours, the Supreme Court issued a judgment in favour of the complainant to the tune of $954,418.
A related problem was that because of the contractual relationship, the intellectual property in the software was not allocated in writing, as it belonged by default to the contractor and not to the client. You can find an online service contract model that will accompany you in developing your own policy. Ideally, you should be able to create a boilerplate model for your business, with which you can easily create a contract for each of your customers by changing only details such as customer name, services provided, fees charged and other details. Employees or Contractors – Impact on Intellectual Property The property protection clause explains that the materials developed as part of the services are the exclusive property of the client. The clause also stipulates that the service provider is not liable for damage caused by the use of these materials for non-contract services. A service contract is different from a loan. A service contract binds both parties to the agreement, while the loan is one-sided and binds the employee only to the agreement. Service contracts are agreements between a customer or customer and a person or company that will provide services. For example, a service contract can be used to define an employment contract between a contractor and an owner.