Contract Creation and Management

Ashanti Jai

Law/531

March 1, 2010

Memo To: Span System Management

From: Ashanti Jai

Date: March 1, 2010

Subject: Contract Creation and Management

Management:

You all maybe aware by now that we are facing a few legal issues in regards to our contract with Citizens-Schwarz AG. The contract was not clear among both parties, and the final contract was shrouded in ambiguities. Clarity is most important when developing contracts, and is the hallmark of successful contracts. Careful review of a contract before signoff is vital to a successful business partnership. [ (University of Phoenix) ]

One of C-S’s most influential negotiators Leon Ther, threatened the validity of our contract based on what he considered to be unacceptable deliverable defects and the occurrence of recent schedule delays [ (University of Phoenix) ]. In an attempt to avoid court disputes or a contract rescission Span and C-S were able to negotiate and amend some contract clauses and reach agreement terms. Reaching a collective agreement eliminated possible cost of disputing the situation in court. The purpose of this memo is to address the legal issues and legal principles present in the contract, and to identify ways in which management can help avoid these issues as well as risks. Developing different opportunities will help the company minimize liabilities, and benefit from opportunities.

In law, a contract is a binding legal agreement that is enforceable in the court of law or by binding arbitration. In other words, a contract is an exchange of promises with certain terms for breach. The most important facet of a contract is that one party makes an offer for arrangement that another accepts [ (Wikipedia, the Free Encyclopedia, 2010) ]. In Spans case, the most important legal issue that we were confronted with was an indistinguishable contract. In the future we will work towards preventing such issue from occurring. Our remedy for this concern will be to appoint contract...