Week-4 You Decide - 1 Can Big Bank's President rescinds the...

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1. Can Big Bank’s President rescinds the contract? Yes, based on that there was never a meeting of the minds on essential terms. Under what circumstances can a contract be rescinded by either party? A contract can be rescinded by the parties' mutual agreement or unilaterally by a party upon proper grounds. . In turn, an "action for rescission" is actually a suit to enforce the rescission by seeking appropriate relief, i.e., a return to the status quo, based upon rescission. What facts have to be alleged and proven? 1 – Systems Inc. met the conversions deadlines on their previous conversions. 2 – Systems Inc. has the fastest data processing, confirmed by the President of Big Bank. 3 – The mortgage portfolio conversion was delayed 10 days. 4 – That one of the people who has to sign-off on changes was out of the country and out of contact. What is the result of a contract that is rescinded? Rescission is a remedy that disaffirms the contract. The remedy assumes the contract was properly formed, but effectively extinguishes the contract ab initio as though it never came into existence; and its terms cease to be enforceable. 2. Big Bank’s President also threatens legal action. What potential causes of action could you foresee him bringing in court? Breach of contract based on performance Would he be successful? Why or why not? I don’t think he would. Big Bank also did not perform well, they failed to provide Systems Inc. necessary information, and they did not have a plan in place in the event a key decision maker was not available to sign-off when a change to the conversion fields was needed. What arguments could Systems Inc. raises in its defense?
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This note was uploaded on 02/05/2012 for the course BUSINESS FI515 taught by Professor Arthonanyan during the Spring '10 term at Keller Graduate School of Management.

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Week-4 You Decide - 1 Can Big Bank's President rescinds the...

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