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Big Banks Essay

1284 words - 6 pages

1-Do Big Bank and Systems, Inc. have a valid contract? Discuss the formation of a contract including contract elements.
A contract is a relationship between, generally, a buyer and seller defined by an agreement about their respective rights and responsibilities, a contract is also a document that describes such an agreement about those rights and responsibilities. In Phase I of the Contract Management Process ,the pre-award phase, where the contract begins, the key actions are too: clearly state objectives, identify the sources and nature of uncertainties about achieving those objectives, defining and assessing risks, and making a decision about an appropriate course of action. Therefore, ...view middle of the document...

Fraud has the same elements of proof as misrepresentation, with the added element of knowledge that the information given is false. Unconscionable Section 2c of Big Bank, Systems addition to compensatory damages , non breaching parties are entitled to collect the extra damages or incidental damages involved because of the breach some parties agree in their contracts on the amounts they will pay in the case of nonperformance damages agreed upon in advance are liquidated damages , and the contractual clauses containing them are enforceable as long as they are not excessive and compensatory damages are not awarded in addition to the liquidated damages
in some cases , the non breaching party may be able to collect consequential damages ,consequential damages that result because of the breach and generally involve lost business , lost profit , or late penalties . big bank would need to prove there was an actual breach of contract , whcih with this contract written in its current state , leaves much to be interpreted .
3-What are contract defenses? What arguments could Systems Inc. raise in its defense?
“In the event the conversion process is stopped, cancelled, or suspended by Big Bank, Big Bank
agrees to pay Systems Inc. all labor costs, expenses, and charges incurred by Systems Inc. in preparing to perform under this Agreement” Some contracts are not actually contracts for criminal or illegal activities, but the terms of the contract are grossly unfair to one party. A contract that gives all the benefits to one side and all the burdens to the other is an unconscionable contract. The standards for determining whether a contract is unconscionable are the public policy standards for fairness that cover all types of contract provisions and negotiations. This contract could be interpreted as being heavily weighted to protect systems Inc. gross disparity in the values exchanged is an important factor to be considered in determining whether a contract is un conscionable .
would he be successful ? why or why not ?
I believe this contract would be diffecult for either party to contest or defend in court due to its unclear expectations and vague wording that court is not the best approach to resolving this opportunity for either party . the vague wording of the contract in limited liability section 8a gives system Inc 30 uninterrupted power outage days before the contract could be considered void. an ice storm could also be considered an act of god , providing additional support for systems Inc. the most big bank could be reimbursed for would be for service charges received from system Inc for the twelve month period prior to the alleged damage

4-Review the facts provided and the sample contract. What provisions of the contract could you cite to support an argument that it is not in Big Banks best interest to rescind the contract? What facts could you cite to...

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