Breach of Contract Using Adr

Breach of Contract Memo

MEMO

To: Span C-S Project Team

From: Span Project Manager

Date: August 30, 2010

Subject: Modification to C-S Project

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An alternative dispute resolution in the form of negotiation has taken place with our largest client, Citizen-Schwarz AG (C-S) to avoid the litigation process. This notification is to provide awareness to the project team regarding the complaints the client has brought to our attention. We would like to preserve the relationship with the client and provide them with substantial performance products. The ambiguous wording in the previous contract has caused for amendments to the original. The deliverables of the system product has been behind schedule due to the new user and system requirements. Since there has been no clause in the contract for this type of situation, it is important on our end to adjust to this new time constraints as only 40% of the project has been completed when we should be at 60%. The quality of the recent deliverables has also been questioned as it has been deficient as flaws have been noted in the user testing stage. Although there are issues of product quality and schedule slips on Span’s end, we have encountered lack of timely review and approval times from the C-S project management due to their structure changes. It is only fair that we find a proper business medium in working with the client to adjust the contracts that would successfully benefit both companies.

There have been several breaches in the contract, a “breach in the contract occurs when a contracting party fails to perform an absolute duty owed under a contract (Cheeseman, 2010).” There has been a material breach of the contract obligations, meaning the non-breaching party is allowed to dismiss further performance, they may also rescind the contract, as they have provided us with orders to do so. This rescission is an order to undo the...