croup A project - 1. Can Big Bank's President rescind the...

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1. Can Big Bank's President rescind the contract? A: No. Rescission requires that the parties must be able to be returned to the position they were in before the contract was made. Here, one parties has substantially performed 5/6ths of the contract. Therefore, rescission will not be permitted. Under what circumstances can a contract be rescinded by either party? A: Unilateral rescission is affirmatively permitted upon clear and convincing evidence of fraud, mistake, illegality, coercion, duress, and as a defense upon a preponderance of evidence that the contract is adhesive or unconscionable. What facts have to be alleged and proven? What is the result of a contract that is rescinded? A: Fraud: material misrepresentation intended to induce justifiable, detrimental reliance and causing damages. MIstake: material error of fact by one party, where the other party knew or reasonably should have known of the first party's mistake. Illegality: contract violates public policy (constitutional, statute or regulation). Coercion: One party removes the other party's voluntary assent though actual or threatened force or intimidation. Duress: One party's voluntary assent is lost due to extrinsic circumstances (e.g.,
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This note was uploaded on 10/28/2011 for the course BUSINESS ACCT 305 taught by Professor Poletti during the Spring '09 term at DeVry Columbus North.

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croup A project - 1. Can Big Bank's President rescind the...

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