Memo-Contract Risks

Memorandum 1

Recognizing Contract Risk and Opportunities Memorandum

Patricia Harris

Business Law 531

Judge James Motsay, Instructor

Memorandum 2

Abstract

Contracts have been necessary in the business world since the existence of businesses. Contracts allow businesses to count on money, supplies, and services. Contracts are the private law of business: the parties develop their own private set of laws through their contracts. These private laws can be enforced by the courts in all states. Businesses cannot expand and grow without being able to rely on commitments; resources are wasted if promises are not fulfilled. This Contract Creation and Management Simulation between Span Systems, a United States Software Company and Citizen Schwarz AG, a Company based in Germany has entered into an International business contract which is very similar to a domestic contract, (University of Phoenix, 2009). However, the unique aspect of international contracts is that additional risks and questions arise over the choice of currency, the impact of culture on contract interpretation and performance, and the stability of the governments of the parties involved in the contract. In this particular case, Span System has identified that there is a breach of contract based on the performance, communication, and requirement changes. At the end of this memorandum, it is strongly recommended that both companies agree to renegotiate the contract instead of going before litigation, (Jennings, 2006).

Memorandum 3

December 21, 2009

Memorandum Thru: Judge James Motsay, Instructor

For: Span System, Attention Mr. Grant

From: Patricia Harris

Subject: Contract Risk and Opportunities

1. Because Citizen Schwarz AG has expressed a breach of the contract clause due to the...