ABSTRACT
The legal consequences which arise from the contract plan can be considered fewer than four broad headings. They are the establishment of the persons against whom the employer has a right of action in contract and who owe to the employer a duty of care and the measure of damages which the employer may be able to recover against them either in contract or negligence. They also include the nature and extent of the liabilities which the employer may have to other persons either in contract or negligence and the measure of damages for which he may be liable and the effect of pre-contractual discussions. The general and historic rule of English law is that a contract only creates rights and obligations enforceable by the contracting parties as against each other. The old rule has given rise to a number of difficulties in sub-contracting, especially in relation to nominated sub-contractors and suppliers.
