Chapter 7: Contracts

Contract

- is a meeting of minds between two persons whereby one binds himself, with
respect to the other, to give something or to render some service.

- a promise or a set of promises which the law recognizes as a duty and when
that duty is not performed, the law provides a remedy.

*When a nurse enters into a contract with an employer, it is usually an agreement

to be paid a certain amount of money and be provided certain benefits in exchange
for such services.

Kinds of Contracts

A. Formal Contract
- refers to an agreement among parties involved and is required to be in
writing by some special laws.

Example: Marriage contracts, mortgages, deeds of sale or work contracts

B. Informal Contract
- one which is concluded as the result of a written document or
correspondence where the law does not require the same to be in writing, or
as the result of oral and spoken discussion between the parties or conduct
between the parties, evidence and intention to contract.
 C. Express Contract
- one in which the conditions and terms of the contract are given orally or in
writing by the parties concerned.

Example: Formal contracts wherein the kind of services offered, salary, date
and time of effectivity including fringe benefits

*facio ut des – “I do that you may give.”

D. Implied Contract
- one that is concluded as a result of acts of conduct of the parties to which
the law ascribes an objective intention to enter into a contract.

E. Void Contract
- one that is inexistent from the very beginning and therefore may not be
enforced.

F. Illegal Contract
- one that is expressly prohibited by law.

Requisites of a Contract
1. Two or more persons must participate
2. Parties involved must give consent to the contract
3. Object which is the subject matter of the contract must be specified such as:
◌ All things which are not outside the commerce of man
◌ All rights which are not intransmissible
◌ Future inheritance in cases expressly authorized by law
◌ All services which are not contrary to law, morals, good customs,
public order and public policy
4. The cause of obligation is established. The time, price, and subject matter are
expressed. Generally, the lengthof timeof a contract for services is atleast
 equal to the period for which wages orsalaries are payable. Thus, if one is
engaged on yearly rates, the length of time of the contract will be at least
one year.
5. Contracting parties must have the legal capacity to enter into a contract.
They must
◌ be of legal age
◌ be of sound mind
◌ not be under the influence of intoxicating drugs, or fear of bodily harm
◌ not be suffering from physical disability such as those who are
mentally incompetent

INEXISTENT CONTRACTS
The Following are void or inexistent from the beginning:
1. Those who cause, object or purpose are contrary to law, morals, good
customs, public order or public policy.

2. Those who cause or object did not exist from the time of transaction.

3. Those who object is outside the commerce of man.

4. Those which contemplate an impossible service.

5. Those where the intention of the parties relative to the principal object
cannot be ascertained.

6. Those expressly prohibited or declared void by law.

7. Those which are absolutely simulated or fictitious.

VOIDABLE CONTRACTS
The following contracts are voidable or annullable, even though there may
have been no damage to the contracting parties.
 1. Those contracts wherein one of the parties is incapable of giving consent to a
contract.

2. Those whose consent is vitiated by mistake, violence, intimidation, undue

influence or fraud.

ILLEGAL CONTRACTS
Contracts obtained through use of fraud (deception and trickery), undue
(unlawful) influence or duress (coercion) in securing such, and those that are
expressly prohibited by law are illegal.

1. Those that are made in protection of the law. If a nurse proceeds to

administer intravenous injection without special training and according to
protocol established, she/he violates RA 9173, the Philippine Nursing Act of
2002.

2. Consent obtained by fraud. If a nurse obtained the consent of a patient or

the family to be given services, through misinterpretation that she/he is
licensed although she/he is not, such contract is illegal.

3. Those obtained under duress. Duress means actual or threat of violence

or imprisonment in order to obtain consent. A nurse may be forced to sign a
contract under threat of dismissal.

4. Those obtained under undue influence. If a nurse who has been taking
care of an elderly patient uses her close relationship to acquire high salary or
other options as property, such contract is invalid as it is illegal.

5. Those obtained through material misinterpretation. Aside from fraud,

material misinterpretation may permit a person to avoid or cancel a contract.
Suppose a midwife applied a nurse in an agency and was soon found not to
be a registered nurse, the contract that she signed becomes illegal because
she misled the employer that she is a nurse.
BREACH OF CONTRACT
Breach of contract is failure to perform an agreement, whether expressed or
implied, without cause.

The following constitute breach of contract for nursing services:

1. Prevention of performance;

2. Failure to perform because of inconvenience or difficulty;

3. Failure of cooperation in performance;

4. Abandonment of duty (i.e., leaving unconscious patients, going off-duty

without endorsement, loafing while on duty);

5. Substitution of performance; and

6. Failure to use due care.

LEGAL EXCUSES IN REFUSING, NGLECTING OR FAILURE TO PERFORM A

CONTRACT
Following are legal excuses in refusing, neglecting or failure to perform a contract:
1. discovery of material misrepresentation made and relied upon;
2. when performance would be legal;
3. when performance is made impossible by reason of illness;
4. where performance is made impossible by death or patient or nurse;
5. where performance in made for other reasons; and
6. where contract in insufficient

ADVANTAGES OF WRITTEN CONTRACTS

Many nurses fear written contracts. The following are the advantages of
written contracts over oral ones.

1. A written contract is certain. It avoids the uncertainty if human memory.

2. It can specify a definite time within which it is binding so as to protect both
sides against sudden changes without notice. It also fixes a time limit after
which conditions are no longer binding but may be opened for rediscussion.
3. It sets a standard and relieves an individual professional person from
haggling over compensation.
4. It is more likely to be open and well-known so that the use of written
contracts tends to establish minimum standards for professional practitioners
and to protect them against discrimination in compensation.
5. It is definite and can be definite on many details which may otherwise
stimulate favoritism or caprice even among professionals, such as hours of
work, vacation allowances, holiday privileges, health and insurance
provisions.
6. It can provide a definite procedure in case of complaints about substandard
work, so that the employer has a clear course and the professional nurse has
protection against arbitrary action.
7. It creates a minimum of certainty and security for the professional employees
so that he/she is free to concentrate on his/her work without concern for the
details which the written contract has settled.

Definite commitments stipulated in a contract are hours of working and salary,

length if time of contract, days of off duty, details of duties and responsibilities
including the course to be taken in case of non-fulfillment of the terms of
contract.