Contract Creation and Management
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- Date Submitted: 10/03/2011 09:33 AM
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Contract Creation and Management Simulation
Every day in this country someone is entering into a contract. Whether it’s purchasing a new car, leasing an apartment, or buying a caramel macchiato at your favorite Starbucks; we all participate in forming a contract agreement. Contract Law has its roots thousands of year’s earlier when early civilization began to trade and barter with each other. A legal system was created to support and promote trade. From that came a branch of jurisprudence that studies the rights and obligations of parties entering into a contract. In this paper we will discuss the legal issues involving Span Systems and Citizen-Schwarz and tactics used to remedy the contract dispute.
Legal Issues
Contract Law (n.d.), according to the New World Encyclopedia is based on the Latin phrase “pacta sunt servanda,” meaning a promise must be kept. In the simulation banking giant Citizen-Schwarz and Span Systems have both accused each other of breach of contract. C-S believes the contract was breached under substantial performance of contract or a material breach. This occurs when a group exhibits inferior performance of their contractual obligations which decreases the validity of the contract (2010). According to C-S, deliverables were constantly behind schedule and the quality of work was poor due to all the software defects. Span Systems argues that C-S violated the contract under Requirements Change. Since the beginning of the project all change request have been outside the norm of “ordinary” requirement changes that were specified in the contract. This caused major strain on Span Systems to adapt user and system requirement changes, maintain original timelines, and keep project budget from skyrocketing. Citizen-Schwarz believes they have to right to rescind contract offer based on Span Systems performance alone. Span Systems believes that C-S is being unreasonable because of all the system enhancement changes they demanded....
Every day in this country someone is entering into a contract. Whether it’s purchasing a new car, leasing an apartment, or buying a caramel macchiato at your favorite Starbucks; we all participate in forming a contract agreement. Contract Law has its roots thousands of year’s earlier when early civilization began to trade and barter with each other. A legal system was created to support and promote trade. From that came a branch of jurisprudence that studies the rights and obligations of parties entering into a contract. In this paper we will discuss the legal issues involving Span Systems and Citizen-Schwarz and tactics used to remedy the contract dispute.
Legal Issues
Contract Law (n.d.), according to the New World Encyclopedia is based on the Latin phrase “pacta sunt servanda,” meaning a promise must be kept. In the simulation banking giant Citizen-Schwarz and Span Systems have both accused each other of breach of contract. C-S believes the contract was breached under substantial performance of contract or a material breach. This occurs when a group exhibits inferior performance of their contractual obligations which decreases the validity of the contract (2010). According to C-S, deliverables were constantly behind schedule and the quality of work was poor due to all the software defects. Span Systems argues that C-S violated the contract under Requirements Change. Since the beginning of the project all change request have been outside the norm of “ordinary” requirement changes that were specified in the contract. This caused major strain on Span Systems to adapt user and system requirement changes, maintain original timelines, and keep project budget from skyrocketing. Citizen-Schwarz believes they have to right to rescind contract offer based on Span Systems performance alone. Span Systems believes that C-S is being unreasonable because of all the system enhancement changes they demanded....