The areas of contract law that have evolved
It is possible to consider classical contract law as an inflexible tool that addresses different complicated transactions and structures in the contemporary society. The previous policies implemented in contract law were not the actual objectives of parties that were entering into an agreement. Conversely, the policies were not considered as the conditions for the transactions between the parties. In this case, the foundation of the policies applicable to a classical contract was determined during the configuration of the contract. The policies were not only numerical in nature, but they were two-folded (Stark, 2013). The contract theory provides that initially, contractual agreements were based on the free will of the parties getting into the contract. The theory provides that the basis of contracts was the promises that were not to be broken, which means that the dissatisfaction of one of the parties would be wrong.
In the contemporary society, contract law has provisions suggesting that parties getting into a contract have to keep all pacts. Even though this element was also kept in traditional contracts, the fundamental alteration is the basis of the value of the agreements, which were initially mutual but changed to being based on individualism (Kershaw, 2012). In contrast with contracts in earlier centuries, which involved the need for parties getting into a contract to keep their word, the violation of contracts in the contemporary society is acknowledged under common law. This element recognizes the different provisions of reliance theory, which promote the idea that the imposition of liability is essential (Kershaw, 2012). For this reason, contract law as applicable in the modern society includes benefits that are inclusive of justice and fairness. The laws provide commercial entities and consumers with the protection needed while doing business.
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The impact of the evolution of contract law on commercial enterprises
The consumer contract regulations focus on implementing consumer rights directives that can significantly affect commercial enterprises. In addition to the acknowledgement of contracts under the common law, the EU Consumer Rights Directive provides that one set of rules will be applied for businesses that sell goods and services to consumers, which will substitute the regulations covering distance selling as well as doorstep selling (Beale, 2016). In this case, the regulations cover all the contracts made on and off a business premises, including distance sales done online or through the telephone. The type of contract that a business enters into with a consumer determines the protections the consumer receive and the information that the consumer and the enterprise provide. For instance, the regulations provide that for the contracts that businesses apply will be treated as a term that the organization has complied with providing information.
Based on the need for the commercial enterprises to comply with the provision of information, it is possible for a consumer to argue that failing to provide the information is a breach of the contractual agreement. The consideration takes note of the prohibition on misleading and deceptive conduct between different parties. Even though business representatives might think that they are compliant with the provision of information, they are required to look at the information requirements to determine whether they have provided the customers with the information needed before entering a contract. For commercial bargains, contracts involve the exchange of goods or services, which means that the courts can enforce the legally binding agreement (Stark, 2013). Even though it might be written or oral, the business contracts should observe the provision of genuine consent and the intention of creating legal relations between parties. For this reason, the business has to factor in the provision of different bodies of law that exist within business law regulations.
The relevance of the impact to a healthcare organization
Contract law is integral to the operations of a healthcare facility. Before a healthcare professional sees a patient, the expectation is that they should sign a consent form for the recommended treatment and for billing by the patient’s insurer. This could be considered as a form of a contract. Contract law influences the relationship between patients, medical practitioners, vendors, and the healthcare facilities. In most cases, patients receive an open price term contract, which involves the entering into a contract after they legally commit to pay. For this reason, they are legally committed paying for the care they receive (Davies & Shaul, 2010). Just as the requirement for the provision of information in commercial enterprises when businesses enter into a contract with a consumer, a patient should have the information on the price of care before entering a contract.
According to Epstein (2017), it is not possible for the law to subject an individual to contractual duty or to provide another entity with contractual right unless the character thereof is determined by the agreement between the two parties. However, patient-provider contracts incorporate the reference of the healthcare institution’s charge-master. Interestingly the courts primarily analyze cases that challenge the enforceability of open price term contracts, consequently analyzing specific cases to incorporate pricing to external sources (Epstein, 2017). However, in a healthcare setting, an incomplete contract is acceptable because the parties might not be in a position to anticipate the future of the patient during the care process fully.
References
Beale, H. (2017). The future of European contract law in the light of the European Commission’s proposals for Directives on digital content and online sales. IDP Revista De Internet Derecho Y Política , (23). doi: 10.7238/idp. v0i22.3096
Davies, C. E., & Shaul, R. Z. (2010). Physicians’ legal duty of care and legal right to refuse to work during a pandemic. CMAJ: Canadian Medical Association Journal , 182 (2), 167–170. doi. 10.1503/cmaj.091628
Epstein, W. N. (2017). Price Transparency and Incomplete Contracts in Healthcare. Emory Law Journal, 67 (1), 1-58.
Kershaw, D. (2012). Company law in context: Text and materials . Oxford, U.K: Oxford University Press.
Stark, T. L. (2013). Drafting Contracts: How and Why Lawyers Do What They Do. Wolters Kluwer Law & Business.
