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  • Module 3 Case 23

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    Onana
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    Ramos ordered shares of stock through a brokerage, but delivery was delayed beyond the agreed period. Ramos sought to rescind the contract. However, the brokerage's rules, which both parties had agreed to abide by, provided an alternative remedy to rescission in this situation. Specifically, the rules stated that the buying broker must provide written notice and one business day to deliver before other actions can be taken. Therefore, Ramos did not have the right to unilaterally rescind the contract. The court concluded that the right to rescind can be waived, as it was in this case by agreeing to abide by the exchange rules.

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    Ramos ordered shares of stock through a brokerage, but delivery was delayed beyond the agreed period. Ramos sought to rescind the contract. However, the brokerage's rules, which both parties had agreed to abide by, provided an alternative remedy to rescission in this situation. Specifically, the rules stated that the buying broker must provide written notice and one business day to deliver before other actions can be taken. Therefore, Ramos did not have the right to unilaterally rescind the contract. The court concluded that the right to rescind can be waived, as it was in this case by agreeing to abide by the exchange rules.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    11 views1 page

    Module 3 Case 23

    Uploaded by

    Onana
    Ramos ordered shares of stock through a brokerage, but delivery was delayed beyond the agreed period. Ramos sought to rescind the contract. However, the brokerage's rules, which both parties had agreed to abide by, provided an alternative remedy to rescission in this situation. Specifically, the rules stated that the buying broker must provide written notice and one business day to deliver before other actions can be taken. Therefore, Ramos did not have the right to unilaterally rescind the contract. The court concluded that the right to rescind can be waived, as it was in this case by agreeing to abide by the exchange rules.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Legal

    Case Title(s) and question/problem/issue Legal Provisions/Legal


    Why is this a problem? Conclusion
    Citation presented by the principle or Rule Involved
    case(s)
    RAMOS v. CA May Ramos rescind the CMS Stock Brokerage, Inc. sold to LLL The right of a party to No. The right of a party to rescind a contract
    contract? 2,650 shares. LLL bought the shares for rescind a contract in case in case one of the obligors should not
    179 S 719 the account of its clients, including one of the obligors should comply with what is incumbent upon him
    Alfredo Ramos. CMS failed to deliver the not comply with what is may be waived by contract, as in this case,
    shares of stocks within the agreed period, incumbent upon him may be where CMS and LLL had agreed to abide
    but LLL did not demand delivery. With waived by contract with the Rules and Regulations of the
    respect to Ramos, LLL alleged that as a Exchange of which they were members,
    result of CMS’s failure to deliver the Section 1, Article V of the which rules provide for a remedy, other than
    shares within the agreed time frame, Rules and Regulations of rescission, when a party fails to deliver on
    Ramos cancelled his order, disauthorized the Exchange provides that another’s order to buy shares.
    LLL from accepting a subsequent delivery in the event of a Selling
    by CMS, and agreed to hold LLL free Member failing to make
    from any liability for his non-acceptance delivery within a reasonable
    of the shares. Ramos averred that he was period of time of shares sold
    justified in cancelling his order because under delayed delivery
    both CMS and LLL defaulted in contract, it shall be the
    delivering the shares to him. Ramos Buying Member’s duty to
    alleged that the shares were ordered by the advise the Selling Member
    Alakor Corporation of which he is only in writing, giving him one
    the Vice-President and Treasurer, so he is (1) full business day from
    not personally liable on the transaction. the time of receipt of said
    letter of demand, to make
    Petitioner invokes Articles 1191, 1165 delivery.
    and 1169 of the Civil Code on the right of
    a party to rescind a contract in case one of
    the obligors should not comply with what
    is incumbent upon him.

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