Contract Creation and Management

Essay by jpros619University, Master'sA-, June 2010

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Contract Creation and Management


Contract is defined as, "voluntary, deliberate, and legally enforceable (binding) agreement between two or more competent parties" (, 2010). In the Contract Creation and Management simulation between Citizen-Schwarz AG (C-S) and Span Systems, I was able to examine the case between the two companies and develop a negotiating position, argue performance of the contract, and amend an existing contract to prevent a potentially disruptive business dispute. In the next couple of paragraphs, I will identify the legal issues present and note the legal principles that apply to each of those issues. Moreover, I will discuss what legal risks and opportunities that arise in the simulation and identify what a manager can do to avoid those risks, and minimize the liabilities. The legal risks discussed in the simulation were: Breach of Contract, Amending the Contract, and Ambiguity of Contracts.

I will discuss these given principles and relate the specific measures managers can take to realize legal opportunities, and evaluate the alternatives that were presented to resolve the problems identified in the simulation.

Breach of Contract

The case between Citizen-Schwarz AG and Span Systems lead through several reasons under the Breach of Contract. One issue would be the requirements change, and how Span Systems believes the original agreed upon requirements of the ordinary changes to user and system requirements have been outgrown. However, C-S stated that Span's changes were unacceptable because C-S speculates that Span is still complying with the signed-off system, in which they have not seen any major increase in any area. Another reason would be C-S breaching the contract under the communication, and reporting any changes of project management structure, which resulted in a delay of Span systems' product delivery. Reviewing of the...