Contract Law: Analyzing Uber Driver Employment Agreements' Validity

This report provides an analysis of contract law principles as they apply to employment agreements between Uber and its drivers. The report begins by defining a contract and outlining the five essential elements for a valid contract: offer, acceptance, consideration, mutuality of obligation, and competency and capacity. It then delves into additional conditions and warranties that should be included in employment contracts, such as job descriptions, benefits, employee classification, and termination clauses. The report further discusses the complexities of determining whether an individual is an employee or an agent, particularly in the context of Uber drivers. The report references relevant case law and legal scholars to support its arguments, providing a comprehensive overview of contract law as it relates to the gig economy and employment relationships. The report concludes by highlighting the distinction between employees and agents, emphasizing the importance of the contract in defining the nature of the relationship. The report aims to provide a thorough understanding of the legal aspects of employment agreements in the context of Uber drivers.

Contract Law
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Table of Contents
Answer to question no-1..............................................................................................................................1
Answer to question no-2..............................................................................................................................1
Answer to question no-3..............................................................................................................................2
References...................................................................................................................................................3
Cases Law................................................................................................................................................3

Answer to question no-1
A contract is an agreement which is intended to be enforceable by law. It can be a written or oral
agreement which is legal and binding in nature between Uber drivers and Uber. The formation of
any contract requires five major elements to include in the employment contract of Uber drivers
and Uber. As stated bv Shell UK v Lostock Garage Limited [1976] 1 WLR 1187, it is held that
these elements are the base of contract which makes it valid and legally binding on the parties.
These elements are Offer, Acceptance, and Consideration, Mutuality of obligation and
competency and capacity. Here in the regards to an employment agreement, all these five major
elements are required to be included. While forming an employment contract the local business
employer should consider the presence of all these elements in the contract for making it legally
binding on the parties to contract. The first element of a contract is an offer or proposal which
initiates the formation of contract. For making a contract there should be an offer to the party and
such offer should be legal under the conditions of law. In an employment contract ( between
Uber drivers and Uber) the offer for employment should be made to the employee as per the
conditions of the relevant laws and Acts. An offer made for doing an illegal act shall not be
considered as a valid offer. The next element of contract is acceptance. An offer made for the
employment must be accepted by the person to whom it is proposed. Also the acceptance should
be free from any undue influence or fraud. The third factor to be included in the contract is
consideration. Consideration is something which is promised by both the parties under the
contract. In an employment contract the employer (Uber) promises to pay the consideration
against the promised performance by the employee. Such consideration should be mentioned into
the contract (Knapp, Crystal, & Prince, 2019). Consideration is must for making the contract
valid and legally binding. Mutuality of obligation refers to the mutually given consent by the
both parties. The conditions under the contract should be decided by the employer and employee
both with mutual agreement to avoid the future disputes. The last but the major element for a
contract is competency and capacity. The parties to contract should be competent and capable
under the law for entering into a contract i.e. the parties should not be minor, insolvent, lunatic or
of unsound mind.

Answer to question no-2
Apart from the major elements of contract between Uber drivers and Uber, some other
conditions and warranties should also be added into the employment contract. The contract
should contain the job description for the employee, Benefits and compensations on workplace,
Employee classification, and Schedule and employment period set between Uber drivers and
Uber. All these condition mitigate the future risk of contract which can be occurred due to the
exclusion of some major conditions in the employment contract. Also the terms and conditions
relevant to the termination and its requirement should also be included into the contract. As
stated by Great Britain v Boots [1953] 1 QB 401. It is held that all the significant rules and
regulations related to any condition or matter which adversely affects the Uber business in any
manner should be mentioned into the contract. An employee (Uber driver) should be known with
all the conditions and regulations before entering into an employment contract (Schlechtriem,
2016).
Answer to question no-3
In some circumstances it becomes difficult for us to decide that someone is employee to the
business or not. Sometimes the business has the employment contract with someone but such
person does not fall into the category of employee for the business. The business provides the
resources and working to such person and also gives them the consideration against their
performance but still the person cannot be called as an employee for such business. For example
the cab drivers working for Uber or the delivery riders work under the name of company to run
the company’s business but they are not considered as the employees of the company. However
they can be considered as agents for the company because they are showing the name of
company for their services but they cannot be called as employees. The difference can be found
through the help of contract established between the company and these agents or service
providers. The benefits provided to the employees of the companies are different which makes
them differ from the agents or service providers (Noto La Diega, 2016).

References
Knapp, C. L., Crystal, N. M., & Prince, H. G. (2019). Problems in Contract Law: cases and
materials. Aspen Publishers.
Noto La Diega, G. (2016). Uber law and awareness by design. An empirical study on online
platforms and dehumanised negotiations.
Schlechtriem, P. (2016). Commentary on the UN Convention on the International Sale of Goods
(CISG). Oxford University Press.
Cases Law
Shell UK v Lostock Garage Limited [1976] 1 WLR 1187
Great Britain v Boots [1953] 1 QB 401