This website uses cookies to ensure you have the best experience. Learn more

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 Inc.in 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...

Other Papers Like Big Banks

Banking Features of Australia and Canada

3312 words - 14 pages ” financial products. As for Canada, there are big five banks that oligopoly banking markets: Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Bank of Nova Scotia (BNS), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC) (Bordo, Redish & Rockoff 2011, p.23). Because of strict government regulations, the divisions of other small banks and foreign banks are difficult to enter Canadian banking industry, let alone to compete

Pestel Analysis

829 words - 4 pages , their control was in the hands of the private parties and only big business houses and the effluent sections of the society were getting benefits of banking in India. In 1969 government nationalized 14 banks. To adopt the social development in the banking sector it was necessary for speedy economic progress, consistent with social justice, in democratic political system, which is free from domination of law, and in which opportunities are open to

Global Crisis

1026 words - 5 pages ------------------------------------------------- Financial Instability: Beginning of the end: Markets all over the world fell into turmoil; a little more than £ 50 billion were wiped off of FTSE 100; S & P fell more than 20% when Lehman brothers filed for bankruptcy, throwing the future of banks in jeopardy and sending shock waves all over the globe. Plummet of this ‘too big to fail’ institution marked the beginning of financial

Retail Banks

2058 words - 9 pages his monthly income and etc. Pooling The banks are preferred to have a large number of small loans instead of a small number of big loans. So the variability of loan loss will be reduced. Diversification If the bank is loaning to a wide range of different borrowers then it is called diversification. It means that a bank should better to lend to both public and businesses and also should loan to businesses which are in different industries. It

Global Banking

2083 words - 9 pages commercial businesses. - United States big business groups and each of the seventeen major business empires in the US has at least one bank as a member. - For example, the top US banks like Citicorp, Chase Manhattan, Chemical Bank, and First National Bank of Chicago are all part of the Rockefeller Group of 100 companies while the Morgan Group of nearly 80 companies has also several financial institutions in its business structure. - The

Commercial Banking

4791 words - 20 pages banks were followed, in 1956, by Pakistan’s habib bank. In 1958the turkey-based Ottoman Bank started business in Kenya. These banks provided greater alternatives to potential customers in Kenya, but they did not really challenge the dominance o f the ‘big three.’ By the middle of 1960, the three held 147 out of 178 branch and sub-branch banks open in the country. The only other bank to start operations in Kenya prior to 1963 was the Commercial

Universal Banking

1344 words - 6 pages institutions of national importance, being characterized as “too big to fail”, as their collapse would lead to a disruption of the whole financial system and economy as a whole. Therefore, it was crucial for regulators to ensure their protection by establishing the safety nets. Second, universal banks in the LMICs lack access to the international capital markets, and safety nets allow governments to serve as lenders of last resort for them

Growth of Telecom Sector in India

1584 words - 7 pages CHAPTER-1 INTRODUCTION TO INDIAN BANKING SYSTEM: OBJECTIVE- Here our main objective is to analyse the impact of mergers and acquisition in banking sector in India. We will try to find out from the experience of US and EU how Indian banking sector will respond if some major players merge together. In this report we will create a situation in which five big players in banking sector merge together and we will analyse the effect of merger

Sustainable Banking -an Indian Perspective

3068 words - 13 pages equipments will require more financial assistance from banks. (3) Reserve Bank of India (RBI) may follow environmental guidelines for the banks in the lines of IFC and Asian Development Bank etc (4) Recent announcement of the government to use economic instruments for environmental control may include Banks in future (5) Big investment projects supported by international organizations like the World Bank and ADB require Environmental Impact

Expansionary Monetary Policy

762 words - 4 pages increase money supply and allows for people to continue their financial activities keeping the market flexible. The Federal Reserve Bank's open market operations consists of the buying and selling of government bonds to commercial banks and the public (McConnell, Brue & Flynn, 2009). The increase in the money supply when money is gained upon sales contribute to overall availability of monetary funds. The manipulation of the reserve ratio has a

Private Banks Of Bd

4612 words - 19 pages keeping idle fund. This ratio should also be justified; otherwise it can affect profitability adversely. So private commercial banks should be prudent in maintaining this ratio to ensure maximum profitability. So it is found that profitability of private commercial banks in Bangladesh increases as total asset, No. of Branches and Business per Employee increase. Total asset can be considered to measure the size of a bank. Big banks can provide

Related Essays

Big Four Banks Essay

519 words - 3 pages Ethical Dilemma In this case, we observed the four big banks in Australia – ANZ, Commonwealth, NAB and Westpac in relation to their profitability, fees and charges, as well as their decision to raise the interest rates beyond the changes by the Reserve Bank of Australia (RBA). In addition, the corporate social responsibility of banks has become a central issue in the public debate around the Global Financial Crisis (GFC). I believe banks do

Function Of Commercial Bank Essay

1427 words - 6 pages The Function of Commercial Bank (A Class Bank) Commercial banks are responsible for adding customer deposits in a safe and liquid form and lending the proceeds to worthy commercial, industrial, governmental and nonprofit institutions. Commercial banks also provide market making activities in municipal, government and corporate bonds. Banks provide consulting and advisory services to customers as well as safekeeping and trust services. The

Investment Banking Essay

2436 words - 10 pages an investment bank is directly related to the quality of its research analysis. Big investment banks employ a large number of salespeople, analysts, and traders in a network of offices, and may operate a trading floor. Investment banks use cutting-edge communication and computing technology to support their operations. Dedicated, fully redundant, high-speed networks interconnect all major offices (domestic and foreign). Computing facilities and

Reversing Bank Nationalisation Essay

1396 words - 6 pages Bank of Commerce to Thapar companies, the Central Bank of India to the Tatas.  Banks controlled by industrial houses used the public deposits for their own purposes and excluded the farmers and small enterprises from access to finance. One of the main objectives of bank nationalisation was to break the unholy nexus between big business houses and banks since it seriously distorted the allocation of credit and excluded major sectors such as