Law 531 Week 3
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Memo Recognizing Risk
LAW/531
17 January 2010
Memo
To: Span Systems Management
From: VP Contracts
Date: April 12, 2010
Subject: Recognizing Contract Risk and Opportunities
Management Team:
This Memo is written to Span Systems management as a result of the contract and contract negotiations with Citizen-Schwartz AG. Citizen Schwartz’s management believes that there has been a slip in the contracted schedule and resulted in poor quality of the deliverable product. Leon Thor Citizen-Schwartz’s negotiator has threatened to rescind Span Systems contract. Both parties have been in discussion, and did not want to rescind the contract or proceed with court actions. To prevent this from occurring, Span Systems and Citizen-Schwartz AG have begun negotiations on the contract clauses and have settled on some terms of agreement. During the negotiations process Span Systems team identified the following risks: Breach of Contract under substantial performance, Breach of Contract under Internal Escalation, and Breach of Contract under Requirements Change. I will summarize the risks Span System learned from this situation and what we can do to address this and minimize liabilities.
First we must the understanding that the contract or concurrence of wills between Span Systems and Citizen-Schwartz AG is an enforceable legal agreement of both parties. If Span System or Citizen Schwartz AG, has not performed or delivered said product in accordance with the contract or mutual obligations than either party may enforce a breach of contract under substantial performance. If substantial performance were found the remedy or damages for such breach would typically be a monetary compensation determined by the courts. The entrance into any contract can be risky, thus stressing the importance to review thoroughly and scrutinize all aspects of the contract before entering a signed agreement and implementing the agreement.
Span Systems and Citizen Schwartz has come to a...
LAW/531
17 January 2010
Memo
To: Span Systems Management
From: VP Contracts
Date: April 12, 2010
Subject: Recognizing Contract Risk and Opportunities
Management Team:
This Memo is written to Span Systems management as a result of the contract and contract negotiations with Citizen-Schwartz AG. Citizen Schwartz’s management believes that there has been a slip in the contracted schedule and resulted in poor quality of the deliverable product. Leon Thor Citizen-Schwartz’s negotiator has threatened to rescind Span Systems contract. Both parties have been in discussion, and did not want to rescind the contract or proceed with court actions. To prevent this from occurring, Span Systems and Citizen-Schwartz AG have begun negotiations on the contract clauses and have settled on some terms of agreement. During the negotiations process Span Systems team identified the following risks: Breach of Contract under substantial performance, Breach of Contract under Internal Escalation, and Breach of Contract under Requirements Change. I will summarize the risks Span System learned from this situation and what we can do to address this and minimize liabilities.
First we must the understanding that the contract or concurrence of wills between Span Systems and Citizen-Schwartz AG is an enforceable legal agreement of both parties. If Span System or Citizen Schwartz AG, has not performed or delivered said product in accordance with the contract or mutual obligations than either party may enforce a breach of contract under substantial performance. If substantial performance were found the remedy or damages for such breach would typically be a monetary compensation determined by the courts. The entrance into any contract can be risky, thus stressing the importance to review thoroughly and scrutinize all aspects of the contract before entering a signed agreement and implementing the agreement.
Span Systems and Citizen Schwartz has come to a...