Basic Legal Principles

Abstract

Before embarking on any analysis of sub-contracting, it is essential to have an understanding of the legal principles which govern the relationships between the parties to the building process. The two areas of law which impinge time and again on all sectors of the building industry are contract and tort (particularly the tort of negligence). This chapter therefore explains what constitutes a legally binding contract, how to decide whether a contract has come into existence, and the effect of the doctrine of privity of contract. It also sets out the basic principles of the law of negligence, and gives a legal definition of sub-contracting.