Big Bank’s President Essay
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Under what circumstances can a contract be rescinded by either party?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 …show more content…
In order to rescind a contract, misrepresentation must occur; thereby, one party is not given full and accurate information. The elements of innocent rescission include the following:
- Misstatement of material factor
- Reliance by the buyer on that material misstatement or omission
- Resulting damages to the buyer
In order for rescission to occur, the misrepresentation from one party must have been a 'material fact'. A material fact in that it would have affected the other party's decision.
Looking at it from this perspective, Big Bank does have the ability to rescind its contract with us. As disclosed, the bank met with several other competitors to research who would do the best work and meet their demands. The bank met with several companies to discuss who would do the best work on the contract. We stated in our meetings with Big Bank that we (1) never missed a conversion deadline; however, we failed to disclose that we only performed three conversions, and (2) we stated that our processing systems were the best. The fact that we did not disclose full and accurate information regarding our performance in meeting Big Bank's needs, the President may be eligible for a rescission.
Noting that, Big Bank's final acceptance of our contract with them included the following statement from the President,