Question

Coverage Interstate, Inc. (CII), coordinates an insurance network that includes 1 million potential patients. By contracting with CII, a medical provider gains access to the network in exchange for accepting payments at lower than prevailing market rates. Doctors, Inc., contracts with CII but, when few patients are forthcoming, files a suit to recover the difference between the contract and market rates. Under the reasoning of Seaview Orthopaedics v. National Healthcare Resources, Inc. (Links to an external site.), the court will likely rule that the contract is

Group of answer choices

enforceable because the contract does not lack consideration.

enforceable because consideration is not required for this contract.

not enforceable because Doctors received few patients.

not enforceable because the contract lacks consideration.

Answer 1

Doctors, Inc., contracts with CII but, when few patients are forthcoming, files a suit to recover the difference between the contract and market rates. The court will likely rule that the contract is enforceable only because the contract does not lack consideration. Hence, option(A) is correct.