In what circumstances will Peter be an employer and Paul an employee? January 1, 2023 by admin Paul is claiming to be Peter’s legal representative. Peter is paying Paul to perform a task and Paul is subject to the control and direction of Peter. Peter is paying Paul to perform a task but has no control over how Paul will complete the task. Paul has authority to bind Peter to a contract with a third party. See Answer Peter is paying Paul to perform a task and Paul is subject to the control and direction of Peter.