Case Study- JP Morgan

Case Study- JP Morgan

Question 1- How Administrative Agencies Like the Securities and Exchange Commission Prevent High Risk Gambling

There are many local and national jurisdictions, which have applied ban on gambling or these agencies have been controlling these gambling heavily with the facilitation of licensing. These regulations have led to gambling tourism and illegal gambling in the regions where these activities are banned. The involvement of government together with implications of laws and taxes has led to closed associations between government and gambling organizations. Due to these associations, lawful gambling provides significant revenue to the governmental agencies.

The administrative bodies opt for insurance In order to prevent high risk of gambling of securities (Purpura, 2013). As the agreements of insurance include a large number of features that are common with insurance. In addition, wages contracts, most of the time is different under the legislations of agreements with one party having the interest in the bet on the consequences beyond the specific financial terms, for example, the bet with insurer on securities. However, the contracts of insurance are also considered as aleatory under a large number of legislative systems although they are subjected to numerous forms of laws (Purpura, 2013).

Question 2a -Determine the Elements of Valid Contract

A contract has following elements in order to be valid:

Agreement

A valid contract contains an agreement, when the will is expressed by all the parties; the contract is directed towards a similar objective. For a valid contract, the will is required to be manifested by an individual who is able to judge and the will should not be stimulated or spoiled. The ways in which all the parties can develop an agreement are because of simple schemes which include the following:

There should be a proposal mailed to a body or an individual.

There should be acceptance by the recipients of the direct offeror together with proposal.

The valid contract is require to be concluded at the time or place, in which the acceptance is made known to the applicants (Best & Barnes, 2007).

Object

A valid contract contains a totality of what the parties' intent to obtain through this contract. The core subject of a valid contract is the primarily the performance of both the parties that should be obligated to achieve, then transfer and development of real rights, together with modification or termination of present bonds (Best & Barnes, 2007).

The Cause

A valid contract also contains cause for which the contract is formulated. The cause must be different from the reason. It is the personal reason which has led to a contract (Best & Barnes, 2007).

Written Document

A contract is valid if it has the way it manifest the objectives of both the parties. It is essential for a valid contract to be in a written form.

Question 2b- Duty of Good Faith and Fair Dealing in Bank

The fair dealing and duty of good faith is also developed in banks. For example, appropriate diligence and good faith for the security of the interest of mortgagor is the duty ...