Running head: CONTRACT CREATION AND MANAGEMENT SIMULATION MEMO Contract Creation And Management Simulation Memo Nigel Summers BUS LAW/531 12/3/09 Toni Seller Abstract This paper is a memo stating the legal Issues and legal risks within the simulation. Suggest different strategies or factors to avoid these risks, minimize liabilities for managers, and suggest different alternative approaches to resolve the problems identified in the simulation and explaining which alternative approach would be benefit the company in this simulation.
Date: December 2,2009 To:Toni Seller From: Nigel Summers Subject: Stating the legal Issues and legal risks within the simulation. Suggest different strategies or factors to avoid these risks, minimize liabilities for managers, and suggest different alternative approaches to resolve the problems identified in the simulation. In the simulation there are two parties Span Systems that makes and distrubites the most prestigious banking software and C-S (Citizen-Schwartz) a large German bank.
Eight months in to the project some issues occured with both partys not satsfyied more on C-S behalf because they weren’t satsfied Spans deliverables in the last couple months were behind schedule, the quality of the deliverables weren’t up to the standards with C-S, and with major bugs detected within the user testing stage. C-S is demanding immediate transfer of all unfinished code; asserted rescission of contract. The legal Issues Span System stated the it would be Breach Contract under; “Communication and Reporting”, “Requirement Change,”and “Internal Escalation Prodcure for Dispute. In C-S dispute replied back they haven’t broke any of these contracts ,but maybe one The contract of “Communciation and Reporting” According to University of Phoenix simulation(2006),“Communication and Reports states through the duration of the project there will be reguarly scheduled meeting. And both parties project managers will determine the frequency and locations of the meetings. It require in the beginning of the project will require a bi- weekly meetings. These status meetings can be conducted either in person, via telephone or through electronic means email, instant messagner, internet conference, and etc. After these actions weren’t take place, the change in the project management structure at C-S has been a key reason for the delay in delivery of the goods/products. Reviews of the deliverables have not happened as planned leading to slips in schedule. Whereas Span Systems argued substantial performance of the contract based on time elapsed, C-S had a valid argument regarding the quality and delay in delivery of code. Acceptable quality and timely delivery, in this case were concurrent conditions to Span’s claim of substential peformance.
The major issues with both companies in which performance, change control, communcation reporting, and project structure. So both parties decide to come to a common ground and reneogitate the contract to satisfy both parties. Other legal Issues that could’ve arose in this contract for level peformance such as Jennings (2006 )stated, Complete stating that a contracting party has fulfilled every duty by the contract (p. 23), Material breach states the level of performance is below reasonably acceptable levels(p. 23), Ecutory contract when the promise to perform is made but the actual performance has not been done(p. 2). International issues may have occured for project manager such as exchange rate(Jennings 2004) Alternatives approaches that could resolve the issues or legal problems within in the simulation for the project manager in the future such as:Invite the presence of C-S project manager at Span to serve in a quality control capacity, Scale up the team of Span programmers to deliver the project within a reasonable time frame, Upload a daily project updates on Span’s extranet for authorized C-S personnel to view. By Renegoitating the contract with these terms and alternatives both parties will be sastified .
This will cause a healthy relationship in future and with other in transctions. Preserving the relationship with a business partner may be worth far more important in the long haul. References Jennings, M. M. (2006). Business: It’s Legal, Ethical, and Global [7th ed. ] [University of Phoenix e-book Collection] Mason, OH: Thomson, Retrieved December 2, 2009 from University of Phoenix, LAW531-Business Law course website University of Phoenix. (2006). Contract Creation And Management Simulation Computer Software]. Retrieved from University of Phoenix, Simulation, GEN480 – Interdisciplinary Capstone website.