Contract Management

Contract Creation and Management

University of Phoenix

LAW/531

Christine Benway

August 15, 2011

Contract Creation and Management

Creating a contract between two parties may be a challenging task. Much time is spent at the negotiating table to finalize the terms of the contract. The simulation depicts a scenario between Span Systems, (SS) and Citizen-Schwarz AG, (C-S) when a contract dispute arises. The contract negotiations were troublesome from the beginning and loaded with ambiguities. The two companies must work together to keep the relationship alive and prosperous for both. The contract is a one year, $6 million contract.

Upon the progression of the contracted work problems arose and C-S threatened termination and was seeking a new contractor to complete the work. C-S cited performance problems and delayed deliveries as the reason for the grievance. According to the complaints SS is not meeting the needs of C-S, therefore there is a breach of contract.

Contract Provisions

The contract contains provisions that allow for normal changes in the system requirements. C-S has required changes during the project which would not be classified as “normal” changes. SS has been able to complete the changes and deliver the product; however the quality aspect of the project suffered. Before losing C-S’s business SS legal counsel was enrolled and a series where C-S could be held in a breach of contract. This was communicated with C-S and a renegotiating session began.

References

Jennings, M.M (2008). Business: It’s legal, ethical, and global environment (8e), Mason, OH: Cengage Learning. Available from the University of Phoenix eBook Collection database.

University of Phoenix. (n.d.). Contract creation and management [Computer Software]. Retrieved from University of Phoenix, Simulation, LAW531 website.