You Decide

1. Can Big Bank's president rescind the contract?

Yes, but both parties need to agree to modify the contract. Both parties had problems fulfilling their parts of the contract.

Under what circumstances can a contract be rescinded by either party?  

This can happen when an offer to tender is provided by the party that wants to rescind. The offer to tender means the rescission or needs to make an offer to release back all benefits they got while under the contract

What facts have to be alleged and proven and what is the result of a contract that is rescinded?

The facts needed are to prove that the other group involved did something indecorous. A contract can also be broken  if both groups involved fashioned the same error in making the document.

2. Big Bank's president also threatens legal action. What potential causes of action could you foresee him bringing in court?

He and his company could try to sue for breach of contract.

Would he be successful?

No, I don't think he would be.

What arguments could Systems Inc. raise in its defense?

We completed the first four tasks ahead of schedule, unable to complete the sixth due to problems with # 5. The other party caused the original problem with 5, and the work could have been completed on time.

What are Big Bank's potential damages?

The funds lost from the conversion, but I don't think this would occur.

3. 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?

Not only do they have to pay for work that has already been done, It would cost them time and money for a new company to take over to re-do the entire process, Also, billing etc., would not be completed in a timely manner which would result in more funds lost.

What facts could you cite to support an argument that Big Bank be responsible for some of these issues and/or not in compliance...