Business

Contract Creation and Management

Charles Woods

LAW 531

October 17, 2012

Jamie L. Zadra

Contract Creation and Management

The following University of Phoenix Simulation shows managers the correct way to handle a specified dispute between two companies, disputing a breach of contract. The first thing managers need to look upon the contract formation itself.

Contract Formation

From the very beginning of forming this contract between the parties, issues arose from how the contract was processed. “Every clause was negotiated fiercely and the parties could barely reach a consensus. Even the specific requirements of the software were never entirely clear to any party” (University of Phoenix Simulation, 2012). However, after all these debates on the various clauses of the contract it seems that the signing of the contract finally happened, however, it was shrouded in ambiguities. In the following paragraph, information in relation to the dispute is present.

Dispute

This simulation gives managers a look at possibilities of resolving a dispute between Span Systems a software development company, and a German bank titled Citizen-Schwartz AG aka C-S. The dispute starts with the timeliness of delivery of the product, along with the quality of the product itself. C-S claims that since testing the product developed by Span Systems, found that the product came with major bugs. These bugs are defects in the product itself. However, upon discovering these defects Citizen-Schwartz AG begins to worry that the software company will not uphold the one-year contract worth six millions of dollars. Nevertheless, C-S had concerns about securing a contract with e-CRM. However, according to (University of Phoenix Simulation, 2012), “chances of Span getting the order hinge on the performance of this contract.” Furthermore, because of these issues C-S wants to cancel their contract with Span Systems. Now that the dispute is specified, the manager needs to look upon the legal...