Constance Paper

Construct and Support an Argument

Constance Walton

MGT/521

November 8, 2010

Jonathan Warren

Recognizing Contract Risk and Opportunities Memo

In United States there are several of deals made every day. The success of business men and women of today lies in there increased awareness of misunderstanding or miscommunication within a contract. If a contract is filled with ambiguity and vague statements this can be costly to both parties involved. It is very important to read and understand a contract before agreeing to its term. During the negotiation process one can make changes or add but once the contract is signed and agreed upon the deal is sealed.

The Contract Creation and Management simulation serves to highlight the importance of reviewing existing or new business contracts in order to avoid misunderstanding. It is best to review and study the contract before reaching an agreement to make sure the contract is beneficial for both parties and for the success of the contract. The courts when encountered with a contract with such vagueness has no choice but to rely on what common people would have assumed to be true by the intent of the parties and left to fill in where the contract language lacks. This memo is in regard to the contract creation and management simulation of Span Systems a software developer and Citizen-Schwarz AG bank. This simulation demonstrated the errors and mistakes that can be made and the actions taken to enforce such a contract. The memo will discuss the legal risks, opportunities presented, and alternatives for solving the disputes.

Based on Span’s performance on this current project worth $6 million, C-S has a much larger project in the pipeline. This simulation highlights the importance of reviewing an existing business contract and helps develop a negotiating position in the face of potential performance issues. The simulation begins with C-S’ dissatisfaction with...