Contract Essay

900 WordsMar 5, 20094 Pages
Within the past few months, we have acquired a new account with Citizen-Schwartz AG (C-S). Our programmers have been under demanding timelines and because of the recent growth of user and system requirements, deliverables were behind schedule because of the difficulty to accommodate previous timelines and costs. We have just finalized negotiations with C-S, amending several clauses in our bilateral contract with them. The previous contract had many ambiguities which resulted in legal issues and business risks. As a manager, it is extremely important to understand how to avoid legal risks, minimize liabilities, and be able to benefit from any opportunities that may arise. Legal risks and liabilities can be avoided by fully understanding and abiding by contracts. When a contract is not closely followed in a partnership, issues, like the ones we were facing, begin to arise. I wanted to inform you of the recent issues we have had with C-S, so that as managers and in the future, we will be able to avoid some of these legal contractual issues. Because of the increase in workload, C-S officials made claims concerning the quality of deliverables and delivery schedule slips. One clause in our contract with C-S allows ordinary requirement changes, but the changes we had faced were far from ordinary. Along with C-S’s complaints of delivery slips and unsatisfactory work, we had complaints of our own. The lack of communication and the change in project management at C-S affected schedules, making it difficult for us to follow timetables previously agreed upon. This claim was able to work in our favor, leading to the renegotiation of our contract with C-S. During negotiations, the following contract clauses were discussed, and amended; Internal Procedure for Dispute, Requirements Change, and Communications and Reporting. We felt that the change in workload was more than

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