Contract Creation and Management
LAW/531 Business Law
December 14, 2011
The author of this paper will provide details as related to the Contract Creation and Management simulation. The issues presented are the contract between Span Systems and Citizen-Schwarz AG a large German bank.
Span and Citizen-Schwarz have entered into a one year contract worth $6 million. During the contract a snag in deliverables has arisen, in which span has fallen behind. Citizen-Schwarz representative Leon Ther is not happy with the situation and is demanding immediate action. The contract is very important and the management of Span does not want to lose the contract.
The first point in the situation for Span is to determine what can be done to correct the issue and keep the contract before Citizen-Schwarz can take legal action. The management at Span has asked to review the contract and determine the contract negotiation points. After reviewing the contract Span will use the following three breaches of contract points should Citizen-Schwarz decide to break the contract. The breaches considered are Breach of Contract under “Internal Escalation Procedures for Disputes,” Breach of Contract under “
Requirements Change,” and Breach of Contract under “Communications and Reporting.”
The three breaches were proposed to Span’s management and the decision was made to forward the breaches to Citizen-Schwarz to determine their position. Management agrees with the choices made and approves the negotiations with Citizen-Schwarz. Before the negotiations can begin, Span’s management has received news that Citizen-Schwarz is in talks with an Indian software developer to take over the project. Span immediately sends an email to Ther with the breaches in order to curtail the contract loss.
Ther agrees with two of the three breaches and has decided to continue the contract on the condition that it can be renegotiated. Span seeks legal advice and confirms that...