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 Under what circumstances can a contract be rescinded by either party?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 What is the result of a contract that is rescinded?
Can Big Bank’s president rescind the contract?
Under what circumstances can a contract be rescinded by either party? The contract must be made under legal conditions
Big Bank can use Misrepresentation as a defense because we told to Big Bank that “we never missed a conversion deadline.” But we failed to disclose that Systems Inc. has done only three conversations. Big Banks choose us among other companies because we are fast and they like fast. It was an innocent misrepresentation; however, because of this reason Big Bank’s president is allowed according to the law for a rescission which includes material fact. Material fact is defined as “the type of information that would affect someone’s decision to enter into the contract.
What facts have to be alleged and proven?
Elements required for innocent misrepresentation:
1. Misstatement of material factor (Systems Inc. failure to disclose that had only performed three conversions). 2. Reliance by the buyer on that material misstatement or omission (Big Bank decided to contract Systems Inc. services because they like fast). 3. Resulting damages to the buyer (Systems Inc. delay resulting damages to Big Bank).
What is the result of a contract that is rescinded?
Big Bank and Systems Inc. will return to their condition before entering into the contract. Big Bank shall compensate Systems for partial services or performance so Big Banks cannot suit Systems Inc. for breach in the future because the contract has already been rescinded.
Read more: Legal Definition of Contract Rescission | eHow.com http://www.ehow.com/about_6394573_legal-definition-contract-rescission.html#ixzz1dznNvKwy
Systems Inc. delay was caused because of Big Bank failure to provide the...
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