Contract Creation And Management SimulationEssay Preview: Contract Creation And Management SimulationReport this essayIn todays business environment companies are choosing to renegotiate contracts rather than go to court to have the contracts enforced. A court remedy breach of contract can be lengthy, costly, and in the end no one wins. Companies such as Span Systems and Citizen-Schwarz (C-S) should have a clear understanding of contract laws, as well renegotiation practices designed to remedy breach of contract. Both parties are obligated to fulfill each part of the agreement, and failure to meet the terms of the contract by law can be consider a breach of contract. This breach can occur when parties such as Span Systems, whom fail to perform within the guidelines of the agreement.
When parties such as Span Systems a leader in banking software and its client Citizen-Schwarz (C-S) enter into a one year legal agreement worth six million this constituted a valid contract. Span System will produced and provide updated banking software to Citizen-Schwarz within the one year contract. As with any project delays issues such as poor performance, project delays, organizational changes, and possible contract violation have arisen within the project. Such elements have led to dissatisfaction from both companies which could lead to a breach of contract if certain contract clauses are not addressed. Span Systems and Citizens-Schwarz must negotiate remedies for breach of contract in order to complete the current project and resolve any contract disputes.
Both Span System and Citizens-Schwarz believe the other to be in breach of contract, each company must evaluate the problems associated with the project development paying attention the project scope, delivery schedule, and technical performance. By developing an acceptable contract by both parties, the software project results should be should be successful. Completion of the project will free Span System and Citizen-Schwarz from contractual obligations.
Span Systems will attempt to resolve its issues with the Citizen-Schwarz by initiating non-litigation tactics such as mediation or other resolution methods. “Mediation is the process by which a third person, called a mediator, attempts to assist disputing parties in resolving their differences.” (Reed, Shedd, Morehead, & Corley, 2005, p.122) It is in the best interest of Span Systems to maintain a good business relationship Citizen-Schwarz because the e-CRM contract is contingent on the successful completion of the Citizen-Schwarzs software project. By implementing non-litigation tactics such as mediation or other resolution methods, will allow Span Systems to increase its chances to resolve the contractual issues with Citizen-Schwarz AG and prevent costly lawsuits. The contractual amendments agreed upon by Span Systems and Citizen-Schwarz from the negotiations meeting are listed below.
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R: spansys.com