Big Bank's President Rescind the Case Study

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He could be successful if the evidence establishes that the delay caused by weather and by Big Bank's deviation from specs were significantly less responsible for the delay that the personnel issues at Systems. He will probably not be successful unless the unavailability of Glenda Givealot was much more of a contributing factor to the delay than the spec deviation. Big Bank's damages are limited by contract to a maximum of 12 months of fees paid to Systems and no other economic damages.

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

Under Section 2a, Big Bank is responsible for providing the necessary data to Systems and under Section 3, for allowing Systems more time necessitated by any delay in the provision of data or any related problems.

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Under Section 2c, Big Bank would be liable for System's preparation costs if the conversion is stopped, and by inference, also for the cost of work already actually performed if the conversion is stopped. Section 3 provides that no changes in forms could be made without Glenda Givealot. Systems would argue that any delays caused by Big Bank's deviation from specs and the weather delay were both excused by contract and that the delay caused by Glenda's unavailability was unavoidable under the terms of the contract......

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