Law 531

RUNNING HEAD: Recognizing Contract Risk and Opportunities Memo

Recognizing Contract Risk and Opportunities Memo

February 7, 2010

LAW 531/ Business Law

Professor Kathryn Harris

Abstract:

Recently, Citizen-Schwarz and Span has been disputing because of the quality and schedule of the deliverables. Citizen Schwarz and Span signed a contract worth $6 million dollars a year ago but with the recent disagreement is put ting the contract in jeopardy. Leon Ther, who is the Citizen Schwarz mediator, is threatening to transfer all the unfinished codes and the rescission of the contract. Citizen Schwarz and Span Systems have been negotiating to amend the contract in which it will persuade both parties. Span systems did not want to lose this contract because Citizen Schwarz has a bigger E-CRM order in the works. This memo determines as well as discuss the issues that will happen between the two parties as well as risk and how to avoid these liabilities in future business endeavors.

TO:

FROM: Necandra L. Thompson

DATE: February 7, 2011

SUBJECT: Recognizing Contract Risk and Opportunities

In the business world; contract disputes are unavoidable if the contract clause is unclear and confusing. These clauses are left for explanation by individuals, which benefit the party that created the risks of breaches and dispute of the contract with the other party of the contract. These risks are preventable risk that can become a costly factor in money and time; it can also have an overwhelming outcome on the company. When constructing the language it will result in a precise discovery and assessment of what the possible risks are associated with in the contract that will assist with the motivation, but not obstructing, the business obstacles.

Span Systems started a $6 million dollar banking software expansion project for Citizen Schwarz AG eight months ago. Leon Ther, who is the IT outsourcing director, states that the contract agreement regarding...