We are a real estate company. In one of our commercial property, the management of parking area have been allotted to a vendor/party on revenue sharing basis e.g. we have made an agreement with the party that they will manage the parking zone and for that they will appoint specific number of people and will pay us a fixed amount on monthly basis.
My question is whether such relation between us and the said party falls under Principal Employer & Contractor relationship and thus comes under the compliance of Contract Act?
From India, Calcutta
In my opinion it is an out sourced activitiy and there is no relation ship of contractor and principal employer relationship. However you go through the agreement and have a legal opinion.
Regards - kamesh
From India, Hyderabad
Ths is nothing but giving a sub-contract to collect the parking charges. In a nut-shell, there is contract between both the parties and they are bound to comply with the applicable contract Act. Pon
From India, Lucknow
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