JP Morgan Chase and Capacity of the Parties to Contract - Essay Example

JP Morgan Chase             JP Morgan Chase Question The mission of administrative agencies, for example, the Securities and Exchange Commission or the Commodities Futures Trading Commission is to facilitate capital formation, protect investors, and maintain efficient, orderly, and fair markets. These administrative agencies supervise the significant participants in the securities sector. For example, the Securities and Exchange Commission manages mutual funds, security exchanges, investment advisors, and securities dealers and brokers. From this perspective, the Securities and Exchange Commission is specifically concerned with safeguarding against fraud, maintaining fair dealing, and encouraging the revealing of significant market associated information. These agencies also prohibit the buying of stock shares with limited finances to pay for them (Seligman, 2003). In addition, the administrative agencies instigate supervision and registration of stockbrokers and securities markets, prohibits unfair utilization of private information in stock sales, and establishes regulations against proxies. In addition, the administration agencies require that organizations providing securities make complete public revelation of all appropriate information. For instance, the commissioners and chairperson of the Securities and Exchange Commission are charged with the responsibility for making sure that investment corporations, dealers or brokers in securities, publicly owned companies, and other parties in the securities and banking sectors conform to federal securities law. These laws are meant to assist the public investors make knowledgeable investment decisions and analysis by guaranteeing proper revelation of material details. In addition, an administrative agency, for example, the Securities and Exchange Commission is solely interested with ensuring that the prospectus documents and registration statement have the details indispensable for probable investors to make adequate decisions. These agencies also have the power to instigate legal sentences against banks or companies if the materials have outright falsehoods, solemn omissions, or misleading information (Capatides, 1992). Question 2 Offer An offer may be written or oral as long as the law does not need it to be written. An offer is the recognized overt act or expression which initiates the contract. A contract is compelled to have a proposal by one of the participants and should be accepted by another. It is what is offered to a different person for the give back of that individual’s assurance to act (Barnett, 2003). The offer should not be unclear or ambiguous. It should be illustrated in terms that are certain and specified, such as the nature and identity of the entity which is on offer and the terms or conditions on offer. Acceptance As a common proposal of law, the contract is created by the approval of the offer made by one individual by another individual. As a common regulation, this acceptance, cannot modify, alter, or vary the conditions of the offer, and cannot be withdrawn (Barnett, 2003). To accomplish this cause the acceptance to be a counter-offer. Even though this proposal may differ from one place to another, the common rule is that there is no provision for conditional acceptances by regulation. In reality, the offeree may be seen as rejecting an offer by making a conditional acceptance. Nevertheless, the offerer, at his wishing, by words or actions which highlights the acceptance of the counter-offer, may be tied by the rules made by the offeree. Consideration A switch of consideration must be incorporated for a contract to be termed as valid. A valuable thing must be given in return, whether it is information, money assets, benefit, interest, or anything for consideration in the future (Barnett, 2003). Also, it may responsibility, loss, or detriment given up to another person. Consideration is an extremely essential component of a contract. It is also essential that consideration be explicitly entailed by the provisions of the contract or agreed on by individuals in the agreement. A detriment or accidental benefit or potential alone may not be considered as legitimate consideration. The consideration should be efficient and explicit to aid the promise not to do or do what is required. Capacity of the Parties to Contract The common assumption of the rule is that everyone has the ability to contract. An individual who attempts to keep away from a contract may have to declare his lack of ability to contrast against the participant who is attempting to implement the contract. For instance, he would have to demonstrate he was drugged or drunk or a minor. This is frequently the most demanding problems of proof to deal with because of the assumption of an individual’s capacity to contract (Barnett, 2003). Both banks and consumers have a responsibility of fair dealing and good faith in the banking relationship. The duty of good faith demands both the banks and consumers to desist from behaving in a way that puts at risk the contractual rights of either party (Barnett, 2003). The duty of good faith bestows on both the banks and consumers the responsibility of realizing anything that the contract demands that all people will do to achieve its intention and to abstain from engaging in any activity which would make the accomplishment of the contract improbable by his actions. For example, the consumers have the duty of providing proper information in all their banking activities and banks have the duty to provide correct information on their financial status. Question 3 Intentional tort actions refer to on purpose actions to cause harm to another person. In contrast, negligent tort actions refer to a situation where an individual fails to take action to correct a predicament that may instigate damage to a person or people. The fundamental difference between Intentional tort actions and negligent tort actions is that the petitioner should provide evidence for the extra component that the defendant’s actions have specified objective to carry out the action which is the adjoining cause of the petitioner’s damages. While intentional tort actions focus on the intentions of a person, negligent tort actions take into consideration the deeds of the defendant (Barnett, 2003). Negligent tort actions incorporate what a large number of individuals may perceive as accidents, for example, an accident involving vehicles. In negligent tort actions, the defendant indubitably does not intend or plan for his dealings to cause harm, but still fails to take precautions needed for that condition. Question 4 The tort action applicable in interference with contractual relations and participating in a breach of fiduciary duty is intentional tort action. This is because the individual has a specified objective to carry out the action and which may cause harm to the other party involved in the contract. The individual deliberately meddles with contractual relations, which entails a legally established activity (Barnett, 2003). In addition, participating in a breach of fiduciary duty also violates the interests outlined in the contract. The objective component in this intentional tort is fulfilled with the person’s urge to produce harmful results by meddling with contractual relations and breaching fiduciary duty. I would prevail in such a situation. This is because in specified situations the law allows people to deliberately engage in actions that may cause harm to others. Question 5 The complexity of security systems are usually determined by the risk profile of the bank, with specified prominence on the constitution of high risk geographies, products, entities, services, and customers. Banks employ a variety of ways to safeguard the software that allows for online transaction to occur through automation. First, they may consult the conditions of service with the cloud nine sources to make certain that the banks’ activities and information are safeguarded with an extreme amount of security. Second, banks demand auditing and security from the cloud nine sources as required by the concerns and needs of the organization. Third, banks have assigned sufficient staff to the research and identification departments. These employees have the responsibility of reporting any suspicious actions regarding the software, considering the amount of transactions and general risk profile (Capatides, 1992). References Barnett, R. E. (2003). Contracts. New York. Aspen Publishers Capatides, M. G. (1992). A guide to the capital markets activities of banks and bank holding companies. New York: Bowne & Co. Seligman, J. (2003). The transformation of Wall Street. New York: Aspen Publishers.  Read More