Grand Canyon University The R

respond to the following discussion post as a peer, Contracts play a pivotal role in the distribution of goods and services, and the day-to-day operations of businesses around the world (Rohland, 2020). A contract is a promise or legally binding agreement between two or more consenting parties who promise to perform a particular action or series of actions that is enforceable in a court of law. The primary purpose of a contract is to specify, limit, and define legally enforceable agreements (Pozgar, 2020). For a contract, whether written or agreed to orally, to be legally enforceable in a court of law, some elements must be present within the contract. These include an initial offer, consideration, acceptance of offer, mutual agreement, competency, and genuine assent. In most cases, some contracts, not all, must be in writing. Elements of an enforceable contract applied to me, as a hospital administrator and a vendor to purchase a new CT scanner include:

· I can be referred to as an offeror who makes an offer to the vendor, who can be referred to as the offeree to purchase a new CT scanner. An offer is usually conditional and requires both parties’ consent to the offer. The vendor has the option of accepting or rejecting my offer or the vendor makes a counteroffer.

· After we have agreed to an offer, a formal written acceptance is required for this kind of healthcare equipment.

· The contract must include consideration detailing shipment and installation. It is incumbent on both parties to include maintenance if the vendor offers these services. This must be agreed in the contractual agreement.

· Mutuality of obligation means we both understand all the information in the contract and agree to the terms and conditions of the contract, and that we recognize that we must perform under those terms.

· Both the vendor and I, representing the health care facility must demonstrate competency and capacity to execute the binding contract. This means that we must have the mental capacity to understand and agree to the contract.

· The binding contract must be free from coercion and demonstrate genuine assent, this means that we entered the contract freely.

I would also include service and maintenance terms into the contract if the CT company provides CT services that include, planned maintenance, emergency service, parts, X-ray tubes, and other items because this kind of hospital equipment requires periodic and emergency service and maintenance. I would confirm its validity from the details of the offer, consideration, capacity, and acceptance.


Pozgar, G. D. (2020). Legal and Ethical Issues for Health Professionals. (5th ed.). Jones & Bartlett Learning.

Rohland, L. (2020). Elements of a Contract. Salem Press Encyclopedia.

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