1. Can Big Bank’s president rescind the contract? Under what circumstances can a contract be rescinded by either party? What facts have to be alleged and proven? What is the result of a contract that is rescinded? Yes, based on that there was never a meeting of the minds on essential terms. A contract can be rescinded by the parties' mutual agreement or unilaterally by a party upon proper grounds..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. 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. 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.
Yes, Big Bank’s president can rescind the contract. The circumstances that makes the contract to be rescinded by either parties are as follows:
One party to a contract can rescind it because of substantial nonperformance or breach by the other party
When time is of the essence in a contract, failure to perform within the time stipulated is a ground for rescission
When one party to a contract abandons it and refuses further performance or her conduct shows that she is repudiating the contract, the other party is entitled to rescission.
By the parties mutual agreement or unilaterally by a party upon proper grounds.
An unconditional notice by one party that he does not intend to perform a contract is a ground for rescission by the other party. In order to justify rescission, the refusal must be absolute and unconditional
Facts that have to be alleged and proven are:
As Systems Inc done their work and deadline perfectly in previous assignment.
It was the fastest data processing, which was confirmed by the President of Big Bank.
The decision maker who need to sign and decide on any new additions in the project was out of station.
Rescission is a remedy that disaffirms the contract.No Arbitrary right exists to rescind a contract. An executory contract that is Voidable can be rescinded on the grounds of Fraud, mistake, or incapacity. A mutual mistake concerning a material fact entitles the party affected by the mistake to rescind the contract, unless the contract has already been completed and rescission would be an injustice to the other party. Rescission can also be allowed even for a unilateral, or onesided, mistake in order to prevent an Unjust Enrichment of the other party. On rescission, the aggrieved party can recover the money he or she has paid or the property he or she has delivered under the contract.
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.
Big Bank’s president also threatens legal action. What potential causes of action could you foresee him bringing in court? Would he be successful? Why or why not? What arguments could Systems Inc. raise in its defense? What are Big Bank’s potential damages?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? What arguments could Systems Inc. raises in its defense? That Big Bank did not provide all the necessary information and proper planning for changes to conversion fields, and are out of compliance with the contract.
What are Big Bank’s potential damages? There could be