Nursing Leadership and Management

BS NURSING / FOURTH YEAR

STUDENT ACTIVITY SHEET
Session # 6

LESSON TITLE: CONTRACTS Materials:

LEARNING OUTCOMES:
Upon completion of this lesson, the nursing student can:
1. Define a contract;
2. Enumerate the different kinds of contract; and,
3. Recognize the requisites of a contract.
Book, pen and notebook, and index card/class list
References:
Lydia M. Venzon RN, MAN, FPCHA Ronald M.
Venzon RN, MAN (2010), Professional Nursing In
The Phillippines 11th Edition: C & E Publishing, Inc.
839 EDSA, South Triangle, Quezon City

LESSON PREVIEW/REVIEW

Based on the previous lesson, give the 9 factors in selecting a field of Nursing.

MAIN LESSON

A 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 contract is 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
1. A formal contract refers to an agreement among parties involved and is required to be in writing by some special
laws. Examples are marriage contracts, mortgages, deeds of sale or work contracts.
2. An informal contract is 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.
3. An express contract is one in which the conditions and terms of the contract are given orally or in writing by the
parties concerned.' An example of this is usually found in formal contracts wherein the kind of services offered,
salary, date and time of effectivity including fringe benefits, if any, are specified. If a private duty nurse is asked by
a physician to go on special duty for his patient and the patient himself and his relatives do j not object to the
service, it is implied that the private duty nurse will be paid under the doctrine of facio ut des which means "I do that
you may give."
4. An implied contract is 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.' To avoid subsequent problems, nurses are advised to clarify the
terms and conditions of employment before assumption of work with the prospective employer.
5. A void contract is one that is inexistent from the very beginning and therefore may not be enforced.

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 6. An illegal contract is one that is expressly prohibited by law. Examples of void and illegal contracts are found
towards the end of this chapter.

REQUISITES OF A CONTRACT
1. To have a contract, two or more persons must participate.
2. The parties involved must give consent to the contract.
3. The object which is the subject matter of the contract must be specified such as:
a. all things which are not outside the commerce of man;
b. all rights which are not intransmissible;
c. future inheritance in cases expressly authorized by law; and
d. 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 length of
time of a contract for services is at least equal to the period for which wages or salaries 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
a. be of legal age;
b. be of sound mind;
c. not be under the influence of intoxicating drugs, or fear of bodily harm; and
d. not be suffering from physical disability such as those who are mentally incompetent.

Married women have the full capacity to go into a contract except in some cases when it is specified that the husband
should agree to such contract. Examples mortgaging of property. Married female nurses will need written consent from their
husbands if they are going to work abroad.
Persons under 18 years of age may not go into contract without the consent of the parents. However, when parents give
up control over the supervision of a minor and the latter keeps his own wages, he may be regarded as "emancipated" or
freed even though he continues to live at home. In such cases, the father is not liable for the services given to the child. Also,
a nurse cannot charge the parents for services given the married minor or child since marriage emancipates or releases the
child from parental responsibility!
Problems arise because nurses do not clarify the provisions in their contract. Will their religion prohibit them to assist in
the administration of blood transfusion as in the case of Jehovah's witnesses? Can a Roman Catholic nurse assist in a legal
abortion? What will be the nurse's stand in the case of AIDS patients? Can they legally refuse to take care of AIDS patients
by claiming that such may endanger not only their health but also that of their families?
It is imperative that nurses clarify the conditions of work during the interview. They should anticipate such possibilities of
being asked to do what their religion or their personal convictions forbid them to do. In so doing, their chances of being hired
may be lessened but this will be definitely better than the possibility of a legal suit later. If they accept positions that may
pose danger to their lives or health, they assume the risk. They should take the necessary precautions to minimize the said
risks.

INEXISTENT CONTRACTS
The following contracts are void or inexistent from the beginning.
1. Those whose cause, object or purpose are contrary to law, morals, good customs, public order or public policy.
2. Those whose cause or object did not exist from the time of transaction.
3. Those whose 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.
Following are examples of illegal contracts:

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 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 A ct of
2002.
2. Consent obtained by fraud. If a nurse obtained the consent of a patient or the family to be given services,
through misrepresentation that she/he is licensed although she/he is not, such contract is illegal.
3. Those obtained under duress. Duress means actual or threat A of violence or imprisonment in order to obtain
consent. 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 misrepresentation, Aside from fraud, material misrepresentation may permit
a person to avoid or cancel a contract. Suppose a midwife applied as 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, NEGLECTING 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. where performance would be illegal;
3. where performance is made impossible by reason of illness;
4. where performance is made impossible by death of patient or nurse;
5. where performance is made for Other reasons; and
6. where contract is insufficient.

ADVANTAGES OF WRITTEN CONTRACTS

Many nurses fear written contracts. The following are the re t advantages of written contracts over oral ones.
1. A written contract is certain. It avoids the uncertainty of 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 employee 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 work and salary, and responsibilities including the course to
be taken in case non-fulfilment of the terms of contract.

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CHECK FOR UNDERSTANDING
You will answer and rationalize this by yourself. This will be recorded as your quiz. One (1) point will be given to correct
answer and another one (1) point for the correct ratio. Superimpositions or erasures in you answer/ratio is not allowed. You
are given 20 minutes for this activity:

Multiple Choice

1. This 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. Agreement
b. Memorandum
c. Contract
d. Law
ANSWER: ________
RATIO:___________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________
2. A contract 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.
a. Formal contract
b. Informal contract
c. Express contract
d. Implied contract
ANSWER: ________
RATIO:___________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________

3. This the type of contract in which the conditions and terms of the contract are given orally or in writing by the parties
concerned.
a. Formal contract
b. Informal contract
c. Express contract
d. Implied contract
ANSWER: ________
RATIO:___________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________

4. The doctrine “facio ut des” means

a. I do that you may give
b. I give that you may do
c. I receive what I deserve
d. I deserve what I receive
ANSWER: ________
RATIO:___________________________________________________________________________________________
_________________________________________________________________________________________________
_______________________________________________________________________________________________

5. What contract is concluded as the result of a written document or correspondence where the law does not require the
same to be in writing?
a. Formal contract
b. Informal contract
c. Express contract
d. Implied contract
ANSWER: ________
RATIO:___________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________

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6. This contract refers to an agreement among parties involved and is required to be in writing by some special laws.
a. Formal contract
b. Informal contract
c. Express contract
d. Implied contract
ANSWER: ________
RATIO:___________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________

7. What contract is expressly prohibited by law?

a. Formal contract
b. Illegal contract
c. Void contract
d. Implied contract
ANSWER: ________
RATIO:___________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________

8. This contract is inexistent from the very beginning and therefore may not be enforced.
a. Formal contract
b. Illegal contract
c. Void contract
d. Implied contract
ANSWER: ________
RATIO:___________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________

9. The following contracts are void or inexistent from the beginning. SATA
a. Those whose cause, object or purpose are contrary to law, morals, good customs, public order or public policy.
b. Those whose cause or object did not exist from the time of transaction.
c. Those whose object is outside the commerce of man.
d. Those which contemplate an impossible service.
ANSWER: ________
RATIO:___________________________________________________________________________________________
________________________________________________________________________________________________
________________________________________________________________________________________________

10. A failure to perform an agreement

a. Inexistent contract
b. Voidable contract
c. Illegal contract
d. Breach of contract
ANSWER: ________
RATIO:___________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________

RATIONALIZATION ACTIVITY (THIS WILL BE DONE DURING THE FACE TO FACE INTERACTION)
The instructor will now rationalize the answers to the students. You can now ask questions and debate among yourselves.
Write the correct answer and correct/additional ratio in the space provided.
1. ANSWER: ________
RATIO:_______________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________
2. ANSWER: ________

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 RATIO:_______________________________________________________________________________________
_____________________________________________________________________________________________
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3. ANSWER: ________
RATIO:_______________________________________________________________________________________
_____________________________________________________________________________________________
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4. ANSWER: ________
RATIO:_______________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________
5. ANSWER: ________
RATIO:_______________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________
6. ANSWER: ________
RATIO:_______________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________
7. ANSWER: ________
RATIO:_______________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________
8. ANSWER: ________
RATIO:_______________________________________________________________________________________
_____________________________________________________________________________________________
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9. ANSWER: ________
RATIO:_______________________________________________________________________________________
_____________________________________________________________________________________________
_____________________________________________________________________
10. ANSWER: ________
RATIO:_______________________________________________________________________________________
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LESSON WRAP-UP

You will now mark (encircle) the session you have finished today in the tracker below. This is simply a visual to help you
track how much work you have accomplished and how much work there is left to do.

You are done with the session! Let’s track your progress.

AL Strategy: One-Minute Paper

This activity is to evaluate what you learned after the discussion and the activity.
1) What was the most useful or the most meaningful thing you have learned this session?

2) What question(s) do you have as we end this session?

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