Submitted by: Submitted by emadibrahim
Views: 150
Words: 1262
Pages: 6
Category: Business and Industry
Date Submitted: 02/09/2014 07:57 PM
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, the most important thing I feel in developing contracts is communication. Listen to you client, listen and
2-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?
Possible causes for Big Bank legal action: Misrepresentation
“Data processing systems were the fastest around” “Systems Inc. never missed a deadline”
When one party to a contract is not given full or accurate information by the other party about the contract subject matter, misrepresentation occurs. In the case of misrepresentation in the formation of a contract, the law allows a rescission of the contract. Rescission means the contract is set aside. Misrepresentation occurs when a seller makes inaccurate statements about its product or fails to disclose pertinent information about its product that would affect someone’s decision to enter into the contract. To be a basis for rescission, the misrepresentation must have been one regarding a material fact. A material fact is the type of information that would affect someone’s decision to enter into the contract. Although misrepresentation can result simply because of inaccurate information, fraud is the knowing and intentional disclosure of false information or...