Business Paper

Recognizing Contract Risk and Opportunities

University of Phoenix

Puerto Rican Business Law / LAW-531PR

Span Systems Business Report

Summary of events

• There is an agreement between Span Systems and Citizen-Schwarz to provide banking software system services.

• A contractual dispute exists between Citizen-Schwarz Bank and Span Systems.

• Citizen-Schwarz claims that Span services are not delivering on time and has a low quality services.

• Citizen-Schwarz claim is for Span to transfer all the imperfect codes and demand the agreements on the contract.

• The actual agreement is a one-year, and $ 6-million contract (University of Phoenix, 2015).

Function of the report

The function of the report is to establish legal issues presented in the dispute between Span and Citizen-Schwarz, and the legal principles that may apply those issues. Besides, the legal risks and opportunities will be addressed. Finally, the risks and opportunities that a Puerto Rican business potentially could face in an identical scenario will be identified as a method of similarities comparison to Span.

Contract in dispute

• Rupture of Contract under substantial performances of contract—according to the contract, neither party has the right to cancel the contract if 50% or more of the agreement has been accomplished (University of Phoenix, 2015). The legal principle compromised in this issue is the agreement or mutual assent reached, since both parties agreed to the terms of the life of the contract (Cornell University, 2015).

• Rupture of Contract under intellectual property rights—Citizen-Schwarz claims for Span to transfer all imperfect codes and claim asserted rescission of the contract. But, there is information from Span’s marketing manager from London that Citizen-Schwarz has filtered information concerning the codes, to an Indian software developer (University of Phoenix, 2015). The mutual assent principle is clearly brought to the attention...