Ethics

1. The contract can be rescinded if there is a clause which stipulates that the contract has no provision for extension, and that it has to be delivered on time, and that failure can result in cancellation. If Big bank had informed about the stage of having completed four of the six conversions, prior to the expiry of the contract, perhaps there might have been stronger grounds for recourse. Big Bank only needs to prove that the deadline was not met as per the contract. This can result in loss of the order and non payment for any work done.2. Big Banks case would be non- fulfillment of the contract.  If there had some communication to Big Bank of the developments, it might have lessened legal action to only part of the work which was not finished. The litigant would be successful in court, but  the extent of damage would depend on how Systems Inc puts forward its case. Probably on the fifth point, where approvals were not authorized, systems Inc would be on weak grounds, as the fault is entirely their own. The sixth stage of development was held up due to the storm, and could be argued under force Majeure clause (circumstances beyond your control).3. The fact that the fourth conversion was complete, but that the fifth conversion had been delayed due to wrong or insufficient data provided by Big Bank , can be the plank for representation that System inc was not entirely to blame. The sixth conversion was due to circumstances beyond control and can be explained away in any court of Law. If these are explained to Big bank’s boss,  a compromise may be possible. This would also lead to better relationship between the two for the future.4. If the above circumstances are explained to Big Banks boss, and by agreeing to offer some discount for the delayed work, a compromise can be worked out. This would also lead to better relationship between the two for the future. Stress on the fact that four conversions had been completed already is an additional strong point for working out a amicable resolution of the problem.5. A. Complete breach of contract is inexcusable and has virtually no legal remedy.B.  In the case of substantial breach, it will be possible to prove the sincerity of the contractedcompany to fulfill the contract. In such a case whilst the case may go against, the cost ofcompensation awarded will be lower and will depend to the extent of breach of contractin the eyes of the court.C.  In the case of material breach, it is litigation on a technical point, and the case may bedecided in either way, depending on how the case is presented. Material breach is moredifficult to prove .6.  The two points from this exercise are ensuring contracts are properly prepared prior to signing providing adequate protection against avoidable litigation. And need to ensure contracts are met.