SingBank, a government-linked company, intends to establish a digital trading platform (called a digital exchange) for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
SingBank, a government-linked company, intends to establish a digital trading platform (called a "digital exchange") for the trading of digital assets such as cryptocurrencies, and it is seeking a financial technology ("fintech") service provider as a technology partner to help with the building and operation of the digital exchange. The operation of the digital exchange will require approval from the relevant regulatory authorities, and SingBank has already obtained such approvals. In order to find the most appropriate fintech service provider for the project, SingBank launched a Request For Proposal ("RFP") setting out its objectives and requirements for the project, and sent out the RFP to various fintech service providers via email. Antimony Tech ("AT"), a private enterprise, was one of the fintech service providers that received the RFP from SingBank. AT was excited about the prospect of partnering with SingBank to build and operate the new digital exchange. In response, AT prepared a comprehensive proposal, and submitted it to SingBank. AT's proposal was priced at $10 million (i.e., they would do the necessary work for a total price of $10 million). A week after receiving AT's proposal, SingBank arranged an interview with AT to discuss its proposal and to seek AT's clarifications on a few aspects in the proposal. The interview was conducted via videoconferencing. During the interview, SingBank informed AT that the pricing set out in its proposal was quite high compared to the other proposals received by SingBank. The following verbal exchange took place between the two parties: SingBank: "Would you be able to revise your pricing downward?" AT: "What is the pricing range you are seeing in the other proposals?" SingBank: "We received a proposal priced at $8 million." AT: "Let us review our proposal following this chat, and work to close the gap. 2." SingBank: "If you can match that, with the same scope of work, you'll be in a good position." The following day, AT sent to SingBank (via email) a revised proposal for the same work scope but which is now priced at $8 million. SingBank received the proposal, and was satisfied with it. Thereafter, SingBank issued to AT (via email) a document titled "Letter of Intent", which set out the agreed terms drawn from the proposal. After receiving the Letter of Intent, AT arranged to meet with SingBank's representatives for a celebratory event. At this event, senior members of management from both sides shook hands, and there were also mutual exchanges of congratulations on the closing of the deal. A week later, AT began allocating resources to ready itself for the commencement of the project. AT also turned down another prospective client it had been talking to, so as to conserve its manpower resources for the project with SingBank. However, two weeks later, SingBank announced via a press release that it has selected another fintech service provider, called "Zenith", as its technology partner for the digital exchange project. Apparently, SingBank had changed its mind about partnering with AT, as Zenith had offered a much better deal to SingBank. AT is now considering whether to take legal action against SingBank. (a) Explain whether there is a valid contract between SingBank and AT regarding the project for the building and operation of the digital exchange. In your answer, you should identify and discuss the four (4) elements of a contract. (This means that you should also state and define the four elements of a contract, discuss the relevant legal rules associated with them, and apply the legal rules with reference to the facts and circumstances described in the scenario.) (65 marks) (b) Discuss the three (3) functions of business law (namely, as facilitator, regulator and adjudicator), and use specific examples from the abovementioned scenario to explain how business law is relevant for a business entity such as AT in relation to each of these functions. (35 marks) SingBank, a government-linked company, intends to establish a digital trading platform (called a "digital exchange") for the trading of digital assets such as cryptocurrencies, and it is seeking a financial technology ("fintech") service provider as a technology partner to help with the building and operation of the digital exchange. The operation of the digital exchange will require approval from the relevant regulatory authorities, and SingBank has already obtained such approvals. In order to find the most appropriate fintech service provider for the project, SingBank launched a Request For Proposal ("RFP") setting out its objectives and requirements for the project, and sent out the RFP to various fintech service providers via email. Antimony Tech ("AT"), a private enterprise, was one of the fintech service providers that received the RFP from SingBank. AT was excited about the prospect of partnering with SingBank to build and operate the new digital exchange. In response, AT prepared a comprehensive proposal, and submitted it to SingBank. AT's proposal was priced at $10 million (i.e., they would do the necessary work for a total price of $10 million). A week after receiving AT's proposal, SingBank arranged an interview with AT to discuss its proposal and to seek AT's clarifications on a few aspects in the proposal. The interview was conducted via videoconferencing. During the interview, SingBank informed AT that the pricing set out in its proposal was quite high compared to the other proposals received by SingBank. The following verbal exchange took place between the two parties: SingBank: "Would you be able to revise your pricing downward?" AT: "What is the pricing range you are seeing in the other proposals?" SingBank: "We received a proposal priced at $8 million." AT: "Let us review our proposal following this chat, and work to close the gap. 2." SingBank: "If you can match that, with the same scope of work, you'll be in a good position." The following day, AT sent to SingBank (via email) a revised proposal for the same work scope but which is now priced at $8 million. SingBank received the proposal, and was satisfied with it. Thereafter, SingBank issued to AT (via email) a document titled "Letter of Intent", which set out the agreed terms drawn from the proposal. After receiving the Letter of Intent, AT arranged to meet with SingBank's representatives for a celebratory event. At this event, senior members of management from both sides shook hands, and there were also mutual exchanges of congratulations on the closing of the deal. A week later, AT began allocating resources to ready itself for the commencement of the project. AT also turned down another prospective client it had been talking to, so as to conserve its manpower resources for the project with SingBank. However, two weeks later, SingBank announced via a press release that it has selected another fintech service provider, called "Zenith", as its technology partner for the digital exchange project. Apparently, SingBank had changed its mind about partnering with AT, as Zenith had offered a much better deal to SingBank. AT is now considering whether to take legal action against SingBank. (a) Explain whether there is a valid contract between SingBank and AT regarding the project for the building and operation of the digital exchange. In your answer, you should identify and discuss the four (4) elements of a contract. (This means that you should also state and define the four elements of a contract, discuss the relevant legal rules associated with them, and apply the legal rules with reference to the facts and circumstances described in the scenario.) (65 marks) (b) Discuss the three (3) functions of business law (namely, as facilitator, regulator and adjudicator), and use specific examples from the abovementioned scenario to explain how business law is relevant for a business entity such as AT in relation to each of these functions. (35 marks)
Expert Answer:
Answer rating: 100% (QA)
a Validity of Contract 1 Offer and Acceptance Offer SingBanks RFP is an invitation for offers ATs proposal priced at 10 million constitutes a valid of... View the full answer
Related Book For
Auditing A Practical Approach
ISBN: 9780730382645
4th Edition
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton
Posted Date:
Students also viewed these finance questions
-
What is a reporting entity?
-
To correct a birth defect, the tibia of the leg is straightened using three wires that are attached through holes made in the bone and then to an external brace that is worn by the patient. Determine...
-
Joy Marcus owns several income-producing assets, including a stock portfolio and a small services proprietorship. She wants to start up a new corporation in the country Molto, where the income tax...
-
Two conspirators, Timothy Carpenter and Timothy Sanders, were charged with aiding and abetting a robbery affecting interstate commerce and the use or carriage of a firearm. At trial, the FBI...
-
Lewis Companys standard labor cost of producing one unit of Product DD is 4 hours at the rate of $12.00 per hour. During August, 40,600 hours of labor are incurred at a cost of $12.15 per hour to...
-
XYZ Corp. produces 1,000 units of output (along the same isoquant) using various combinations of capital (K) and labor (L). At point A (along the same isoquant), the firm uses 30 units of capital and...
-
Craig Fisher started a lawn service called Craigs Quick Cut to earn money over the summer months. Fisher has decided to use the following accounts for recording transactions: Assets Revenue Cash Lawn...
-
To what extent does our social class background affect our life chances?
-
The angular displacement, radians, of the spoke of a wheel is given by the expression = 0.8t = t, where t is the time in seconds. a) The angular velocity after 5 seconds (w5). W5 b) The angular...
-
A person travels by car from one city to an- other. She drives for 23.3 min at 89.8 km/h, 12.8 min at 84.1 km/h, 51.9 min at 34.7 km/h, and spends 13.8 min along the way eating lunch and buying gas....
-
The upfront cost for a new machine is $50,000. You project the new machine will generate net revenue benefits equivalent to $20,000 at end of Year 1, $30,000 at end of Year 2, and $40,000 at end of...
-
Refer to the following cash flow diagram: The equation that calculates the uniform equivalent (A) is written as A = X + Y Note: Interest rate (1 %) is calculated per year. Choose the correct term for...
-
Urinary tract infections (UTIS) include infections of the urethra, the bladder, or the kidneys. In hospitals, UTIs are more common in patients whose urinary catheters remain inserted long enough for...
-
Mighty Kingdom Company used the retail inventory method to approximate the ending inventory. Cost 650,000 9,000,000 14,700,000 200,000 Retail 1,200,000 Beginning Inventory Purchases Freight-in...
-
Why did management adopt the new plan even though it provides a smaller expected number of exposures than the original plan recommended by the original linear programming model?
-
Which of the following would require the auditor to increase the level of control testing for a particular control? (a) The control is performed monthly instead of daily. (b) There are several...
-
Nicola is managing the performance of audit procedures on the trade receivables transaction file. Her main focus is the posting of entries for sales and sales returns to the control account and the...
-
What are the auditors responsibilities for other information included in an entitys annual report?
-
What are the features of a legal risk management plan?
-
What are residual powers? Concurrent powers?
-
Why have business enterprises adopted codes of conduct?
Study smarter with the SolutionInn App