The basic elements of provider contracts include an offer, acceptance, consideration, mutuality of obligation, competency and capacity, and a written document (Jost, 2015, p. 21). An offer to provide some service or avail certain goods is made when there is an initial promise to compensate the action (Slawson, 2014, p. 28). Acceptance of the offer means assenting to the terms and conditions presented in the offer. Both the provided and the payer must show a willingness to cooperate according to the offer for the acceptance to be valid. Consideration is where either party provides some enticements to make the other enter the agreement. Considerations are majorly made by the provider rather than the payer. According to Slawson (2014, p. 25), all considerations must support the contract in question. Mutuality of obligation is the philosophy that binds both the payer and the provider to act accordingly in the agreement. Without this element, the law considers both parties not ready to undertake the requirements of the agreement.
The element of competency and capacity requires that the payer and the provider are each responsible for the duties they purpose to undertake throughout the existence of the contract. If a minor or a mentally retarded person enters into a contract, then the law may invalidate the contract (Jost, 2015, p. 61). The mentally retarded and minors are deemed to lack capacity and competency to completely adhere to the contract’s requirements unless they prove otherwise in a court of law (Slawson, 2014, p. 41). Writing down the terms of the contract is formally binding to the payer and the provider. Most states only recognize written contracts as enforceable. The payer may have a significant impact on the provider through the amount stated in the contract offer. The provider would then have to work according to the stipulated budget and also bearing in mind the possible profits from the supplies.
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References
Jost, T. S., Hughes, D., McHale, J., & Griffiths, L. (2015). The British health care reforms, the American health care revolution, and purchaser/provider contracts. Journal of health politics, policy and law , 20 (4), 885-908.
Slaw son, W. D. (2014). The new meaning of contract: the transformation of contracts law by standard forms. U. Pitt. L. Rev. , 46 , 21.
