What type of relationship is defined between the City and the Contractor in the Agreement?

The correct choice indicates that the Agreement between the City and the Contractor does not create an employment or agency relationship. This distinction is crucial because it clarifies the nature of the interactions and responsibilities within the Agreement.

In an employment relationship, an employer has control over the employee's work schedule, methods, and tasks, creating a legal obligation for the employer to provide certain benefits and protections to the employee. In an agency relationship, one party (the agent) has the authority to act on behalf of another party (the principal), with certain legal implications for both parties involved.

By specifying that no employment or agency relationship is established, the Agreement protects the City from liabilities typically associated with an employer or principal, such as unemployment insurance or workers’ compensation claims. It also provides the Contractor with autonomy over how they complete their tasks, allowing them to operate independently without interference from the City.

This clarity is essential for ensuring proper legal and operational boundaries and establishing a working partnership based on mutual agreement rather than one party exerting control over the other's operations.