(4)Types of agreements
There are various types of agreements concerning work aside from confidentiality agreements.
●Mandate contract
A “mandate contract” is an agreement that is established when the delegated party consents to undertaking the work entrusted to it by the delegating party. The completion of work is not always the purpose of the mandate contract. Accordingly, the agreement provides for compensation if
certain processes are executed.
A mandate contract is an agreement that is based on a relationship of mutual trust and as such, the delegated party may not entrust the work to a
third party without the consent of the delegating party.
●Service contract
A “Service contract” is an agreement in which the ordering party requests
the contractor to undertake work, and pays compensation when the work is
completed. The purpose of a service contract is to complete the work and
as such, compensation is not paid if the contractor is unable to produce results (deliverables).
As a rule, the contractor may use subcontractors to perform the work.
●Employment agreement
An “employment agreement” is a promise made by a corporation or other entity to pay compensation in exchange for an individual to supply labor
to the company. The employer has a duty to clearly state the wages, working hours, and other working conditions when entering into the agreement.
There are a number of employment patterns such as a “full-time employee,” “contract employee,” and “part-time employee.” The patterns of
employment have become increasingly diversified, and more individuals
are working for various companies by entering into employment contracts
as a dispatch employee.
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Laws on Transactions
The following sections are examples of legislation that concern transactions.
(1)Subcontract Act
Under a situation in which work is contracted to a subcontractor, the contracting company is in a stronger position relative to the subcontractor. As
a result, it is not uncommon for subcontractors to be treated unfairly such
as by delaying payment of proceeds or providing only partial payment,
which serves only the interests of the contracting company.
The “Subcontract Act,” officially known as the “Act against Delay in
Payment of Subcontract Proceeds, Etc. to Subcontractors,” was enacted in order to protect the interests of subcontractors by improving such circumstances and regulating fair transactions for subcontracting. The Subcontract Act was revised in April 2004 to expand the scope of the legislation to cover contracting for the creation of information-based products
such as software, programs, databases, and Web content. The revised legislation also strengthens the penal provisions for violations.
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