A Good Way to Explore the Distinction Between Employee and Subcontractor

question 19

Multiple Choice

A good way to explore the distinction between employee and subcontractor is to

• A)interview other small contractors
• B)perform an internet search for discussion boards on the topic
• C)consult the CRA guide
• D)apply common sense

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Definitions:

Liable

Subject to legal obligation, where an individual or entity is responsible for fulfilling certain duties or compensating for harm caused to others.

Conditions Precedent

Specific conditions that must be fulfilled before a contract or agreement becomes legally binding.

Negotiable Instrument

An official written promise to pay a specified amount of money, which can be demanded at any time or payable at an agreed upon time, identifying the payer on the document.

Secondary Liability

A legal responsibility whereby one party is held liable for the actions of a third party, typically in copyright or partnership cases.