Case Study On Banks Contract

Published: 2021-07-10 06:45:05
essay essay

Category: Banking, Organization, Information, Nature, Confidentiality, Contract, Party, Data

Type of paper: Essay

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Background
There were several problems that arose during the process of converting all the necessary information that were specified by Big Bank—the client. To be able to determine better whether it is appropriate to cancel the contract between Systems Inc. and Big Bank, it would be best to enumerate first the problems encountered and to check whether they are to be considered valid or not. Here are the reasons or factors that caused the delay so far:
1. The converted data were not formatted according to company specifications.
2. Not enough people (there should at least be 4 authorized people) are available to vote whether they will issue a revision for the wrongly formatted converted data.
3. Loss of access to the computers containing all the converted and to-be-converted data due to natural causes (ice storm).
Answer for Question 1
The process of rescission is normally discretionary. However, there may be some conflicts that may arise because the process of rescinding a contract for public companies varies from private ones. In the case, it is logical to assume that the organizations involved (the consumer and service provider) are both from private sectors.
In most cases, no party is allowed to terminate a contract, especially if it has already been ongoing for a couple of weeks. Why? Because the act of rescinding a contract is usually regarded by private organizations as a last resort, should any circumstance arise while the contract is ongoing. The details written in the contract signed by both parties could also be used as a basis to judge whether it is proper to terminate the contract or not. In the contract signed by both Big Bank and Systems Inc., it was indicated that they could not be held liable for any failure in providing the required services or any delays in the processing or delivery of any reports caused, in whole or in part, natural disasters and governmental actions. However, the affected part, Systems Inc, has to prove that the delays were indeed caused by either one of the mentioned factors in their contract first before it could be validated by the court or any party assigned to facilitate the case.
The aim of rescinding a contract is to put all involved parties as far back as possible to the state where they were before the signing of the contract (Schuette, 2012). However, this is only an ideal and does not always happen in reality. A single suffer usually suffers more from a rescind contract than the other party—that’s why it is really considered as a last resort solution.
Works Cited
Schuette, B. (2012). Consumer Alert. General Principle in Cancelling a Contract.

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