Legal Aspects of Healthcare Exam 2UPDATED ACTUAL
Questions and CORRECT Answers
Contract Special agreement, written or oral, that involves legally binding obligations
between two or more parties
Purpose of contract Minimize misunderstanding and offer a means for parties of a contract to
resolve any disputes
Purpose of contact (2) Specify, limit, and define agreements that are legally enforceable
Express Oral or written agreement
Implied Inferred by law, based on conduct of the parties (example a handshake)
Voidable One party has the right to escape from its legal obligation under the contract
Executed Obligation of the parties have been performed fully
Enforceable Valid, legally binding agreement.
If one breaches it, the other will have an appropriate legal remedy.
Unenforceable Because of some defect, no legal remedy is available if breached.
Elements of a contract Offer
Consideration
Acceptance
Offer A promise by one party to do (or not do) something if the other party agrees to
do (or not do) something
Consideration Each party to a contract must give up something of value in exchange for
something of value
Adequacy or inadequacy of consideration will not affect the formation of
contract
Acceptance Upon proper acceptance of an offer, a contract is formed
Meeting of the minds Parties must understand and agree on the terms of the contract
Completeness Terms must be complete so that both parties understand and agree to what
has been proposed
Duration Offeror may revoke an offer at any time prior to a valid acceptance
, Breach of contract One or more of the terms of a contract are violated
Breach of contract elements A valid contract was executed.
The plaintiff performed as specified in the contract.
The defendant failed to perform as specified in the contract.
The plaintiff suffered an economic loss as a result of the defendant's breach of
contract.
Competent Parties Corporations
Partnerships
Agents
Independent Contractor
(Physician,
Nurse)
Corporation ability of a corp. to enter into a contract is limited by its powers as contained in
or inferred from its articles of incorporation
Apparent Authority An appearance that an agent of the corporation has authority that they really
do not have
PARTNERSHIP comprised of two or more persons who agree to carry on a business for profit
and to share profits and losses.
can be created by the parties' action without a written or oral agreement.
AGENT one who has the power to contract for and bind another person, who is known
as the principal.
Corporations can act only through agents (officers).
INDEPENDENT CONTRACTOR An individual who agrees to undertake work without being under the direct
control or direction of another
personally liable for their own negligent acts.
Legality of Object To be a valid contract, the contract must not violate any federal or state statute,
law, rule or regulation
Condition Precedent Act/s or event/s that must occur or be performed by one party before the 2nd
party has any responsibility to perform under the contract
Performance Substantial performance by one party to a contract will obligate the other
parties to perform
Nonperformance Defenses Gives a person a right not to perform under a contract
Questions and CORRECT Answers
Contract Special agreement, written or oral, that involves legally binding obligations
between two or more parties
Purpose of contract Minimize misunderstanding and offer a means for parties of a contract to
resolve any disputes
Purpose of contact (2) Specify, limit, and define agreements that are legally enforceable
Express Oral or written agreement
Implied Inferred by law, based on conduct of the parties (example a handshake)
Voidable One party has the right to escape from its legal obligation under the contract
Executed Obligation of the parties have been performed fully
Enforceable Valid, legally binding agreement.
If one breaches it, the other will have an appropriate legal remedy.
Unenforceable Because of some defect, no legal remedy is available if breached.
Elements of a contract Offer
Consideration
Acceptance
Offer A promise by one party to do (or not do) something if the other party agrees to
do (or not do) something
Consideration Each party to a contract must give up something of value in exchange for
something of value
Adequacy or inadequacy of consideration will not affect the formation of
contract
Acceptance Upon proper acceptance of an offer, a contract is formed
Meeting of the minds Parties must understand and agree on the terms of the contract
Completeness Terms must be complete so that both parties understand and agree to what
has been proposed
Duration Offeror may revoke an offer at any time prior to a valid acceptance
, Breach of contract One or more of the terms of a contract are violated
Breach of contract elements A valid contract was executed.
The plaintiff performed as specified in the contract.
The defendant failed to perform as specified in the contract.
The plaintiff suffered an economic loss as a result of the defendant's breach of
contract.
Competent Parties Corporations
Partnerships
Agents
Independent Contractor
(Physician,
Nurse)
Corporation ability of a corp. to enter into a contract is limited by its powers as contained in
or inferred from its articles of incorporation
Apparent Authority An appearance that an agent of the corporation has authority that they really
do not have
PARTNERSHIP comprised of two or more persons who agree to carry on a business for profit
and to share profits and losses.
can be created by the parties' action without a written or oral agreement.
AGENT one who has the power to contract for and bind another person, who is known
as the principal.
Corporations can act only through agents (officers).
INDEPENDENT CONTRACTOR An individual who agrees to undertake work without being under the direct
control or direction of another
personally liable for their own negligent acts.
Legality of Object To be a valid contract, the contract must not violate any federal or state statute,
law, rule or regulation
Condition Precedent Act/s or event/s that must occur or be performed by one party before the 2nd
party has any responsibility to perform under the contract
Performance Substantial performance by one party to a contract will obligate the other
parties to perform
Nonperformance Defenses Gives a person a right not to perform under a contract
