Creating Management Teams

Contracts are a part of everyday business life. They provide the means for individuals and businesses to sell and otherwise transfer property, services and other rights (Cheeseman, 2007). The list of different types and reasons for contracts is insurmountable. Without enforceable contracts the business world would collapse (Cheeseman, 2007). This is why it is vital to any business that all parties involved in the contract creation and management process are well versed in creating and managing contracts. As with any business venture, there is always some assumed risk when you form a contract with anyone. The contract creation and management simulation provides a great example of what can go wrong with contracts between businesses and how to resolve them.

In the simulation, Citizen-Schwartz AG(C-S) commissioned a software developer Span Systems to create and produce a new software program that would enable them to create electronic reservations. Problems began to form when C-S project management felt Span was not holding up its part of the conditions of the contract between the two companies. The first instances of this came concerning quality of deliverables, deliver schedule slips, and growing end-user-requirements not being met. Once these issues came up the C-S management team wanted to rescind the contract with Span Systems. But before any action to rescind the contract could be taken, the contract had to be reviewed in order to make sure which party was in violation of the contract.

First to consider was breach of contract. C-S informed Span systems of increased end user requirements. Under the current contract Span Systems is obligated to revise the software to allow for these changes as well as stay on schedule for delivery of the product. If Span systems was not producing the amount of product in the span of time given in the contract, they would be in violation of the Requirements of Change Clause in the contract. This clause states that new...