Contract Creation
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Running head: CONTRACT CREATION
Contract Creation
December 7, 2009
Christine Stevenson
University of Phoenix
Business Law
LAW/531
Miriam Gold
Contract Creation
University of Phoenix’s Contract Creation and Management Simulation (2009) demonstrate a conflict between Span System, a software-developing business and Citizen-Schwartz AG (C-S), a German bank. Span and C-S’s conflict is over the companies differences on the quality and dates received of deliverables. In the past few months C-S’s deliveries have been late and the qualities have been inadequate with substantial bugs in the testing phase. C-S cannot afford to have delays, C-S is concerned that Span is not complying with the one-year contract that is worth $6 million. C-S is demanding for the unfinished code and rescinding of the contract.
Performance of Contract
According to the University of Phoenix’s Contract Creation and Management Simulation (2009) the contract stated, "neither party may cancel this agreement, in whole or in part, subsequent to more than 50 percent of the consideration having been tendered by the other.” Because more than 50% of the deliverables was delivered, C-S violated the contract by asking for the unfinished code and rescinding of the contract. Span does not want to lose the $6 million contract or any future contracts, such as the e-CRM contract, Span wants to negotiate new terms for the existing contract to resolve the quality and deadline issue.
Internal Escalation Procedure for Disputes
According to the University of Phoenix’s Contract Creation and Management Simulation (2009) in the internal escalation procedure in the current contract states “prior to filing any formal proceedings the party believing itself aggrieved shall call for progressive management involvement in written notice too the other party”. C-S violated the internal escalation procedure of the contract when C-S requested the unfinished code before...
Contract Creation
December 7, 2009
Christine Stevenson
University of Phoenix
Business Law
LAW/531
Miriam Gold
Contract Creation
University of Phoenix’s Contract Creation and Management Simulation (2009) demonstrate a conflict between Span System, a software-developing business and Citizen-Schwartz AG (C-S), a German bank. Span and C-S’s conflict is over the companies differences on the quality and dates received of deliverables. In the past few months C-S’s deliveries have been late and the qualities have been inadequate with substantial bugs in the testing phase. C-S cannot afford to have delays, C-S is concerned that Span is not complying with the one-year contract that is worth $6 million. C-S is demanding for the unfinished code and rescinding of the contract.
Performance of Contract
According to the University of Phoenix’s Contract Creation and Management Simulation (2009) the contract stated, "neither party may cancel this agreement, in whole or in part, subsequent to more than 50 percent of the consideration having been tendered by the other.” Because more than 50% of the deliverables was delivered, C-S violated the contract by asking for the unfinished code and rescinding of the contract. Span does not want to lose the $6 million contract or any future contracts, such as the e-CRM contract, Span wants to negotiate new terms for the existing contract to resolve the quality and deadline issue.
Internal Escalation Procedure for Disputes
According to the University of Phoenix’s Contract Creation and Management Simulation (2009) in the internal escalation procedure in the current contract states “prior to filing any formal proceedings the party believing itself aggrieved shall call for progressive management involvement in written notice too the other party”. C-S violated the internal escalation procedure of the contract when C-S requested the unfinished code before...