Securities Exchange Commission and Commodity Futures Trading Commission have an important role to play in the US Economy. While the function and objetcivbe of SEC is to protect theinvestors by ensuring that all the public listed companies provide fair and accurate financial information through their mandatory SEC Filings every year. It also ensures order and efficiency in capital markets which facilitate capital formation in US economy. Thus, the approach of SEC, assure that the securities market in US Capital Market are fairly traded, which helps the investor to take high- risk gambles and allows them to make sound financial and investment decision.
On the other hand, The Commodity Futures Trading Commission has the responsibility of regulating the commodity futures and options market. It carries the mission of promoting the competitive and efficient futures market and the protection of investors against any kind of manipulation, abusive trade practices and fraud.
Thus, both SEC and CFTC plays an important role in US economy and so were their role in investigating the JP Morgan Losses..
Following are the valid elements of a valid contract:
1) Offer and Acceptance:
In every contract there must be present a lawful offer and similarly, lawful acceptance of the offer which is required for valid agreement to take place.
2) Intention to Create Legal Relations:
Both the parties to contract, must have intention to create legal relationship and this does not include any social agreements.
This is the third element of valid contract and refers to a legal consideration which both parties gets on entering to the contract. In other words, an agreement is termed as contract only when each of the parties promises to give something to each other.
4)Capacity of Parties:
Both the parties entering into contract must be legally capable to enter into it. The term ‘’Legally Capable’’ means that the party must be of legal age of majority, should be of sound mind and must not be disqualified from entering into the contract.
5) Free Consent:
Consent means that the parties must agree on same thing in same sense and will be considered without free consent only if consent is obtained through:
- Undue Influence
6) Lawful Object:
For the formation of a valid contract, bot the parties must agree for a lawful object. In other words, the object of contract should not be illegal, fraudulent, immoral or opposed in any form in public policy.
7) Writing and Registration:
For a contract to be legal, it must be in writing and duly registered in the court of law.
Any agreement, the meaning of which is not certain is termed as void. In other words, for an agreement to be valid, it must be not be vague and uncertain.
9) Possibility of Performance:
If the object of an agreement is to perform an object which is impossible, in such case the agreement will be void.
10) Must not be declared void:
The agreement between the parties, must not be declared void under any legal law of the country.
ii) Part B:
The duty of Good Faith is implied covenant in a legal contract where both the parties are expected to act in an honest and fair manner. Under a banking relationship, banking authorities are required to act in an honest way in its dealing with customers and guarantors and to refrain from purposefully injuring rights of the customers. Similarly, customers are required to declare their honest identification and financial statements to the bank.
While Intentional Tort refers to purposeful act to harm some other individual, Negligence accounts for act of failing to rectify a problem that can cause harm to individuals. Although, there is a very bleak difference between Intentional Tort and Negligence and following elements need to be fulfilled to account an action as negligence:
1) The defendant owned a duty of care to the plaintiff, where duty of care refers to obligation that people owe each other. However, such action of duty is not with the motive to harm or cause undue risk to anyone.
2) The defendant has breached the duty, where breach of duty refers to any action when a person fails to exercise care as how a reasonable person would do.
3) The plaintiff have suffered injury because of action of the defendant. Injury refers to anything that caused damage to the personal property of plaintiff.
4) Plaintiff suffered injuries because of negligent act by the defendant. However, negligent act is not considered as libelous unless the casue can be proved by plaintiff.
5) Negligent action by defendant is the proximate cause of the plaintiff’s injuries. In such case, whole of the liability will fall on the defendant.
In terms of Tort Action, it was a clear illegal action by JP Morgan and in no way can be defined as Negligence. The act of JP Morgan to release false financial information was meant to cause harm to the investors.
Online Banking has become more popular and the rate of banking consumers using online banking of their transactions is growing. However, there has been serious concerns about security of online transactions.
i) However, all the bank websites have SSL Certificates and that too enhanced Green Bar’’ certificates which makes them reasonably easy to recognize.
ii) Also, many banks have launched the procedure of two page log in, in which second page shows an image selected earlier by the customer.
iii) Banks also shows virtual keyboard on screen to ensure that no keystrokes could be catched by some other person using same PC.
Levine, J. (2009, November 9). How Do You Do Secure Bank Transactions on the Internet? Retrieved February 1, 2014, from Circleid.com: How Do You Do Secure Bank Transactions on the Internet?
Mondal, B. (n.d.). Ten Essential elements of a valid contract . Retrieved February 1, 2014, from Shareyour Essay: http://www.shareyouressays.com/92086/ten-essential-elements-of-a-valid-contract-essay
O'Connor, M. (2011). Regulatory Bodies. In C. Institute, Equity Investments (pp. 11-29). Boston: Custom.