You can check the browser console and the Sharepoint logs for more details on the error. From your description it looks like there is a problem with loading the web resources for the controls.
Indeed the Provider hosted Apps are supported by Telerik Controls as stated in this help topic
, so the App should work as expected if you are referencing correctly the same version of the assemblies everywhere in the project and the application is deployed without an error. More information on troubleshooting problems with loading the web resources of the controls can be found here
Also additional information on deploying apps containing telerik controls is available here:
(the approach is also valid for Sharepoint 2013) - there should be a SafeControls entry in the web.config specifying that the referenced Telerik assemblies are safe for use by the environment. The web resource handler should also be correctly registered in the web.config as follows:
"Telerik.Web.UI.WebResource, Telerik.Web.UI, Version=xxxx.x.x, Culture=neutral, PublicKeyToken=121fae78165ba3d4"
I hope this helps.
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