Recognizing Contract Risk and Opportunities Memo

Recognizing Contract Risk and Opportunities Memo

LAW/531 – Business Law

University of Phoenix

January 7, 2011

Week 3 Assignment

Recognizing Contract Risk and Opportunities Memo

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SPAN SYSTEMS

To: | Management Team |

From: | XXXXXXX |

Date: | January 06, 2011 |

Re: | Contract Risk and Opportunities |

Management Team,

I would like to thank you for your continued efforts, hard work and support with the Citizen-Schwarz AG project. As you may be aware Span Systems recently faced with the possibility of not only losing a client and funds, but also with the possibility of going into litigation and being sued, this due to a poorly written contract. Today, I am proud to announce that Span Systems will continue to do business with Citizen-Schwarz AG, however we have a lot to learn from this experience and we need everyone to ensure that they take the steps necessary to avoid an episode similar to this from occurring again. I will explain in the following paragraphs what issues caused the turbulent relationship with C-S as well as identifying what steps we need to take in the future to prevent them. We need to understand that as a representative of this company we are all held liable for our actions. Agreements are entered to on daily basis at times with written agreements, sometimes orally, and at other times with our actions; we need to ask ourselves if what we are doing would change and or jeopardize the current agreement we have with our client(s).

The damages of going into a lawsuit due to failure to its contractual obligations can cost the company high financial costs, reputational damage and the future of the business.

Effective immediately, all contracts will be reviewed by the different department heads to ensure that we have captured what can reasonably be done...