Contract Creation

Running Head: CONTRACT CREATION AND MANAGEMENT

Contact Creating and Management Paper

Learning Team C:

Keith Hoyng, Norm Davis, Gina Robinson, Hollie Robinson, Jim Vanderpool, Grace Babis

University of Phoenix - MBA 560

August 18, 2008

Contract Creating and Management Paper

This research paper will present information gleaned from the simulation “Contract Creation and Management” concerning contract provisions between Span Systems and Citizen-Schwartz AG (C-S). A contract is a promise or exchange of promises (Reed, Shedd, Morehead, and Corley, 2004, p 215). When both parties initially agreed to the terms of the contract, the duty of performance became binding. Therefore, failure to perform resulted in a breach of contract (Reed, Shedd, Morehead, and Corley, 2004, p 243). The paper will identify the risks and needs of each company, specify contract elements, and identify if those elements are present in the simulation. Team C will create revised contract provisions, specifically pertaining to performance, change control, communications and reporting, project structure, and dispute resolution. These revised provisions will address the needs of both parties and minimize the party’s risks, as well any breaches of contract.

Risks and Needs Associated with the Elements of the Current Contract between Citizen-Schwartz AG and Span Systems

Performance

“Neither party may cancel this agreement, in whole or in part, subsequent to more than fifty percent of the consideration having been tendered by the other” (University of Phoenix, 2008). C-S is unhappy with the current performance of Span despite its own initiation of requirement changes. C-S wants to ensure that the 50% requirement of completion is not rushed with low quality in an effort to keep C-S in the contract. The low quality may cause C-S to lose customers if the software does not function properly. Span needs to increase the timeline and number of workers to address the issues of delivery slippage...