Which statement about common law contracts is correct? A - HSC - SSCE Business Studies - Question 4 - 2021 - Paper 1

To determine which statement about common law contracts is correct, we need to analyze each option:

• Option A: This statement is incorrect because common law contracts are not determined by the Fair Work Commission; instead, they are primarily governed by common law principles and case law.

• Option B: This statement is also incorrect; common law contracts do not require passing the 'better off overall test', which applies to modern awards and enterprise agreements.

• Option C: This is not accurate as common law contracts are typically individual agreements between employers and employees, and unions negotiate collective agreements rather than individual contracts.

• Option D: This statement is correct, as common law contracts are established between individual employees and their employer without the involvement of unions in the negotiation of those specific contracts.

Therefore, the correct answer is D.