Opinion ID: 1425590
Heading Depth: 1
Heading Rank: 3

Heading: Mutual Intent

Text: The Hospitals also claim that DSHS has not met its burden of establishing a contract because there was no mutual intent to set reimbursement rates for MI-GAU care pursuant to unilateral contract. This argument, however, misunderstands the nature of mutual assent in the context of a unilateral contract. [24] [8] To determine the mutual intentions of contracting parties, we follow the objective manifestation theory of contracts. Everett v. Estate of Sumstad, 95 Wn.2d 853, 855, 631 P.2d 366 (1981). [25] Thus, the unexpressed subjective intention of the parties is irrelevant; the mutual assent of the parties must be gleaned from their outward manifestations. Everett, at 855; Washington Shoe Mfg. Co. v. Duke, 126 Wash. 510, 516-17, 218 P. 232, 37 A.L.R. 611 (1923). To determine whether a party has manifested an intent to enter into a contract, we impute an intention corresponding to the reasonable meaning of a person's words and acts. Everett, at 855; American States Ins. Co. v. Breesnee, 49 Wn. App. 642, 646, 745 P.2d 518 (1987). Accordingly, if the Hospitals, judged by a reasonable standard, manifested an intention to agree to the arrangements in question, that agreement is established regardless of the Hospitals' real, but unexpressed, intent. Everett, at 855-56; Wesco Realty, Inc. v. Drewry, 9 Wn. App. 734, 735, 515 P.2d 513 (1973). Turning to the facts at hand, we conclude that, by providing the MI-GAU care, the Hospitals agreed to the payment rates which are included within the Core Provider Agreement. The Hospitals were under no obligation to accept the terms of the contract. Upon voluntary performance of those terms, however, the only reasonable intent which can be imputed to their acts is that they assented to the terms of the contract, including the payment rates. The Hospitals are not entitled to perform the contract and then argue that there was no mutual intention that the contract establish the payment rates. Such a result would be a legal absurdity. DSHS's offer would no longer be certain or controlled by the Department; rather, under the Hospitals' theory, a hospital could accept the terms of the contract and then argue for a better contract. That is a result we refuse to sanction. Having voluntarily performed the necessary services, the Hospitals accepted the terms of the contract and cannot now argue that they did not intend for MI-GAU payment rates to be set thereby. The Agreement is an express unilateral contract that includes a definite method of payment to which the Hospitals manifested their assent when they performed its requisite terms. In sum, we find that the proper interpretation of the term contract as used in RCW 74.09.120 is the common law meaning of the term. RCW 74.09.120 allows for the purchase of MI-GAU hospital care by unilateral contract. In addition, we find that there is a valid unilateral contract for the purchase of MI-GAU hospital care between DSHS and the Hospitals.