...Recognizing Contract Risk and Opportunities LAW/531 Introduction Contracts are a binding, critical part of any business deal between two or more parties. Because of the binding promise between these parties it is important that the contract is clearly worded, negotiated if-need-be, and reviewed before they are signed by all applicable parties. Cheeseman (2010) stated “A contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty” (Chpt 9, Para 2). The following Memo will identify the legal issues presented in the Contract Creation and Management Simulation as well as identify what a manager may do to avoid theses risks and minimize liabilities. Business Memo -- Confidential TO: Project Leadership Team Span Systems – Kevin Grant, Harold Smith FROM: Mike Myers, Project Manager Span Systems DATE: 03/20/2011 SUBJECT: Contract Risk and Opportunities between Span Systems and Citizen-Schwarz AG CC: Board directors The one-year contract written between Span Systems (Span) and Citizen-Schwarz AG (C-S) to develop banking software has recently met with some serious concern regarding if it can remain intact as it currently stands. Recently Leon Ther: the IT outsourcing director of C-S sent a letter stating that “C-S cannot afford scheduled slips because of its deadlines for the release of transaction software in...
Words: 1427 - Pages: 6
...Recognizing Contract Risk and Opportunities Memo Law 531 Charles Cook January 31, 2011 Recognizing Contract Risk and Opportunities Memo DATE: January 31, 2011 TO: Kevin Grant Harold Smith Leon Ther FROM: Michelle Boldt RE: Banking Software Contract Issues Due to recent negotiations with the binding contract between Span Systems and Citizen-Schwarz AG (C-S), necessary changes have come to light. After thorough discussions between myself , Span Systems legal team, and CS's negotiator, Leon Ther, three major amendments within the contract have been agreed upon. Contract clause breaches Performance While performance has been under par in relationship to C-S's requirements, debate over the additional changes within the product specifications have clouded efforts. Communications and Reporting The change in project management disrupted the flow of work in respect to communication and project expectations. While it was a deficiency on Span's ability to work continuously through the changes, with the weakness identified and addressed, this issue can be corrected and avoided in the future. Requirements Changes In the recent past, C-S presented numerous changes in specifications, time requirements placed additional hardships on the production and design team. Thus, disrupting the agreed upon time frame. Legal principles The majority of clause issues within the contract revolve around a lack of communication. While Span addresses...
Words: 577 - Pages: 3
...LAW 531 Week 1 Quiz To Buy This material Click below link http://www.uoptutors.com/LAW-531/LAW-531-Week-1-Quiz LAW 531 Week 1 Quiz 1.) George has served Mary with a complaint alleging breach of contract. Mary has never been sued before and as such, she seeks your advice on what to do with the complaint. You advise that she answer George’s complaint but do not provide any affirmative defenses that George can use against her should not respond to George’s complaint as an answer implies an admission write a letter to the judge saying that George is mistaken answer George’s complaint by admitting or denying the allegations George has asserted against her 2.) Which of the following is true of The Federal Arbitration Act? It permits an appeal for all arbitration awards. It provides that arbitration agreements are valid, irrevocable, and enforceable. It governs all types of alternative dispute resolution. It applies only to breach of contract disputes. 3.) Which of the following is true of arbitration? A resolution may or may not be reached. One party usually drops the case. Parties can introduce evidence to support their case. A judicial referee makes recommendations to the parties. 4.) Which form of alternative dispute resolution occurs when the parties choose an impartial third party to hear and decide their dispute? Mediation Conciliation Arbitration Minitrial 5.) Which of the following is true of a corporation? A corporation terminates...
Words: 1299 - Pages: 6
...Contract Creation and Management Assignment Paper George Van Hoosier LAW 531 June 26, 2012 Dr. Beverly Spencer Contract Creation and Management The scenario presented is on contractual conflicts. In summary, a software development company and a hotel company entered into a business partnership to develop an electronic reservation system for the hotel company. The groundwork of the plan changed and obfuscated what was expected by both parties. These changes were not communicated well enough, both internally and externally, to accommodate these changes (University of Phoenix, 2002). This case presented how a contract between parties was prepared, but what was required was not clear to either party. To further complicate matters, as the project requirements became clearer, no contract revision occurred to discuss how the expanding requirements could be negotiated. The increasing requirements and scope of work meant the original resources assigned to the project were rapidly becoming insufficient. Project delays and poor quality products were the result. Instead of addressing the changes and the need to revisit and negotiate the changing requirements, and additional compensation, the two parties filed suits and counter suits against each other (Cheeseman, chapter 16, 2010). The scenario points out how devastating the resultant legal costs were to both parties, and how the end result was a failed project that could have been resolved with less contract ambiguities...
Words: 963 - Pages: 4
...Contract Risk and Opportunities LAW/531 Jonathan Jamieson April 19, 2010 CERTIFICATE OF ORIGINALITY: I certify that the attached paper is my original work. I affirm that I have not submitted any portion of this paper to any previous course, and neither has anyone else. I confirm that I have cited all sources from which I used language, ideas, and information, whether quoted verbatim or paraphrased. Any assistance I received while producing this paper has been acknowledged in the References section. I have obtained written permission from the copyright holder for any trademarked material, logos, images from the Internet, or other sources. I further agree that my name typed on the line below is intended to have, and shall have, the same validity as my handwritten signature. Student's signature (name typed here is equivalent to a signature): Allison L. Sutton . Contract Risk and Opportunities A contract has been created between Span Systems, a custom e-banking software developer, and Citizen-Schwartz (C-S), a German bank attempting to enter the fiercely competitive U.S. banking market. The legal risks presented during the contract performance causes both companies to disagree on principle points leading to renegotiation efforts by Span Systems to salvage the contract (University of Phoenix, 2010). Differences in contract term interpretation and disputes over contract management can lead to a decrease in production, severance of business...
Words: 1499 - Pages: 6
...SHELLY RESENDEZ completed the Contract Creation Simulation for LAW/531 with the following responses: To enforce a contract, the following four requirements must be met. Determine if each requirement has or has not been met, and then explain your answer. Question 1: Offer: No Response: Bob offered to sell the car to MIke for $25,000. The offer was bound by the offeror. Terms were definitely and reasonably certain. The offer was communicated to the offeree. Now in general an offer is not effective until it is actually received by the offeree. Now when Bob called to tell him two write two checks Mike denied the offer and made a counter offer since the property was not even shipped or received to the offeree. Question 2: Acceptance: No Response: Mike accepted the offer of $25,000. Even though MIke agreed at first he changed his mind the following day. Question 3: Consideration: No Response: The offer of $25,000 was accepted by Mike until he counter offered for $20,000 changing the contract. Now the money was never received. Consideration must be given before a contract can exist. Question 4: A Lawful Object: No Response: The lawful object was the automobile offered but it was never given or received so the contract never existed Question 5: Do the parties have a contract at this point? No Why or why not? Response: no contract has been agreed upon just a counter offer by Mike. Question 6: Does U.C.C Article 2 (Sales), Section 201 apply in this situation...
Words: 383 - Pages: 2
...Contract Risk and Opportunities LAW/531 Jonathan Jamieson April 19, 2010 CERTIFICATE OF ORIGINALITY: I certify that the attached paper is my original work. I affirm that I have not submitted any portion of this paper to any previous course, and neither has anyone else. I confirm that I have cited all sources from which I used language, ideas, and information, whether quoted verbatim or paraphrased. Any assistance I received while producing this paper has been acknowledged in the References section. I have obtained written permission from the copyright holder for any trademarked material, logos, images from the Internet, or other sources. I further agree that my name typed on the line below is intended to have, and shall have, the same validity as my handwritten signature. Student's signature (name typed here is equivalent to a signature): Allison L. Sutton . Contract Risk and Opportunities A contract has been created between Span Systems, a custom e-banking software developer, and Citizen-Schwartz (C-S), a German bank attempting to enter the fiercely competitive U.S. banking market. The legal risks presented during the contract performance causes both companies to disagree on principle points leading to renegotiation efforts by Span Systems to salvage the contract (University of Phoenix, 2010). Differences in contract term interpretation and disputes over contract management can lead to a decrease in production, severance of business...
Words: 1499 - Pages: 6
...Contract Creation Law-531 Business Law October 31, 2011 Whitney Bell Contract Creation Span Systems is the leading banking software companies located in California. . Citizen-Schwarz AG (C-S) contacted Span Systems to develop s software program to assist with there transactions. C-S is a German bank, which the revenues increased to $20 billion. A one-year contract was signed by the two company’s estimation for the software would be $ 6 million dollars. If the project goes well, C-S would seek further business with Span System for future projects. After the software project began, Span Systems' discovered that the deliverables were behind on there scheduling and the quality of the deliverables were unacceptable. The outsourcing director stated to transfer the unfinished code to C-S to find another company to complete the job. He also requested that the contract that was signed be voided. He wanted to void the contract and find another company to complete the task. Span Systems wants to work with C-S to fulfill their contract in order for both parties to continue to work together. After reviewing the contract there are five contract provisions signed by both parties. The five provisions are changed control, performance, procedure for disputes, and communications, and reporting. Span Systems and C-S noticed the five contract provisions were not sufficient to cover the unforeseen requirements. So provisions needed to be made. The simulation...
Words: 1057 - Pages: 5
...Contract Creation and Management In the University of Phoenix simulation (2011), Contract Creation and Management the author of this paper has become the project manager at Span Systems, leading its biggest and most prestigious banking software project with Citizen-Schwarz a large German bank. Span and C-S has agreed to a one-year contract that is worth $6 million dollars. In the past months Span and C-C’s has had conflict over the differences on the quality and dates received of deliverables. In the past months C-S’s deliveries have been late and the qualities are inadequate with substantial errors. With all of the delays and concerns; C-S is demanding for unfinished code and rescinding of the contract. The CEO at Span has advised that they would like to settle this dispute with C-S amicably. Span does not want to lose the contract; they want to negotiate new terms for the existing contract to resolve the quality and deadline issues. According to the University of Phoenix simulation (2011), Contract Creation and Management the contract states, “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.” More than 50% of the deliverables were delivered; C-S violates the contract by asking for the unfinished code and rescinding of the contract. In the month of December Span evaluate and select negotiation points from the contract clauses that pointed out Breach of Contract under ‘Internal...
Words: 1195 - Pages: 5
...Contract Creation and Management Classic Payroll LAW 531 December 14, 2012 Contract Creation and Management Creating a contract to perform services between two businesses requires both parties to consider stipulations presented to protect the respective companies. An offer is provided for the purchaser to accept and specifications on the price and timeline of the deliverables are confirmed. In the simulation regarding Span Systems and Citizen-Schwarz AG (C-S), a one-year contract worth $6 million dollars for the development of a software package was presented to negotiate through issues and amend the contract. Contract Formation The wording used to create a contract should carefully be considered to ensure one can legally void the contract because of a breach in terms. The contract created between the two companies had open terms in several areas because changes to requirements were anticipated on a project of this magnitude. The contract allowed changes in cost, timeliness, and deliverables on both sides. The contract included clauses that did not allow either party to rescind the contract for performance once 50% of the consideration had been tendered, internal escalation procedures to be followed in case of a dispute progressing through different levels of management, timelines for requirement changes to be supplied for adjustments, specifics on how monitoring would be reviewed from...
Words: 1013 - Pages: 5
...Contract Creation and Management Simulation LAW/531 January 4, 2012 Contract Creation and Management Simulation Eight months into a 1-year contract between Span Systems, a California e-banking software developer, and Citizen-Schwarz AG (C-S), a large German bank looking to break into the retail financial services market in America (University of Phoenix, 2009), C-S suddenly sent a letter to Span stating that deliverables were behind schedule and unacceptable. They wanted to rescind the contract and have all unfinished code transferred to them (University of Phoenix, 2009). The letter did not mention any of the problems that C-S was experiencing even though Span claims they have contributed significantly to the delays and quality issues. Span does not want to lose this contract because there is a bigger C-S contract in the works that Span would like to receive. They need to do some negotiating to be able to complete the current contract to C-S’s satisfaction and compete for the future contract. Breach of Contract Internal Escalation Procedure for Disputes According to the current contract, should any party believe itself aggrieved, that party shall file, in writing to the other party, for progressive management involvement. Depending on what level of management was requested to review the dispute, there was an associated allotted time period that needed to be observed. This was obviously violated when C-S demanded any unfinished code and threatened to rescind the...
Words: 1124 - Pages: 5
...Contract Creation and Management Assignment (Option 2) David Williams LAW/531 September 24, 2012 Michael Kelley Contract Creation and Management Assignment (Option 2) Recently I reviewed a video about a Software company suing another Video company because they did not pay the amount owed for leasing editing equipment. According to personnel at the Video Company, the equipment did not work properly and they didn’t know the company signed a lease. They thought the equipment was provided for free on a 30-day trial basis. However, an employee of the company signed documents to receive the equipment and found out later that she actually signed the lease for the equipment. The Software Company assumed that the employee had the authority to act on behalf of the Video Company. However, she didn’t have the authority to sign the lease. The Video Company contacted their attorneys to review the case. The attorneys are trying to get the case reviewed through arbitration. One employee admitted that he told the salesperson “you can make the arrangements with her”. The attorneys stated that the acknowledgement gives the impression that the employee was allowed to act as an agent on behalf of the company. The following discussions in this paper will focus on contract formation, administration, and legal remedies. Contract Formation Based on my review of the video, the employee (Janet) did act as an agent for the company. She’s also ordered and received supplies and other...
Words: 1016 - Pages: 5
...Contract Risk and Opportunities Memo University of Phoenix MEMO TO: Citizen-Schwarz AG FROM: Michael R. Dillon, Span System DATE: December 2, 2009 SUBJECT: Contract Creation and Management This memo is regarding a contract between Span Systems, a company that creates software, and Citizen-Schwarz AG, a large German bank. This memo will examine the contract issues in the Contract Creation and Management Simulation (Contract Creation, 2009). The memo will examine steps managers can take to decrease risks, resolve conflicts between the two parties, and take advantages of business opportunities. A contract is formed when two parities make an agreement to do certain acts in exchange for the other person’s acts. Each person makes a promise in exchange for the promise of another person. A contract can be verbal or written. It can be formal or non-formal. A contract must have the following three elements: offer, acceptance, and consideration (Jennings, 2006). One of the leading causes of business disagreements is the interpretations of contract terms. A contract is binding on the parties and can force the parties to perform. Disputes over a contract can lead to decrease production and expensive legal fees. To avoid these issues, it is important for both parties to make sure all contract terms are addressed, read the contract carefully, and make necessary changes before signing (Goldberg, 2008). The contract is for Span Systems to create custom e-banking software...
Words: 1471 - Pages: 6
...Contract Creation and Management Brian J Louf LAW/531 July 31, 2012 William C Johnson J.D. Contract Creation and Management The Nature of Agency video continues the story of a business relationship between Quick Takes Video and Non-Linear Pro. Quick Takes, dissatisfied with the current video editing software owned initiates contact with a salesperson from Non-Linear Pro to discuss a software product that Quick Takes believes may be a solution for updating their present equipment. The first meeting between the two companies becomes the basis of a subsequent law suit by which both parties dispute the terms of agreement in the use of the software product. The issue is one that involves determining if a contract is formed. Additionally the definition of agencies within a small business must be examined to determine if the actions of a Quick Takes employee may in fact validated the terms of a contract. Elements of a Contract In determining if a contract has been formed between two parties, the elements of a contract are examined to determine its enforceability. For a contract to be enforceable, the following four basic requirements must be met: agreement, consideration, conceptual capacity, and lawful object (Cheeseman, 2010, p. 154). During the initial meeting Non-Linear Pro (offeror) made an offer to an owner of Quick Takes (offeree) the use of an editing software on a one-month trial basis. Quick Takes accepted the offer with the understanding that the trial would...
Words: 1532 - Pages: 7
...Scenario Collaborative Analysis University of Phoenix Pedro E. Grave de Peralta LAW531-Business Law Ken Marc July 28, 2012 This paper will be discussed, as well as explaining sole proprietorship, partnership, limited liability partnership, Limited Liability Company, S corporation, franchise, and corporate form found this week chapters. The chapter’s help you to understand the scenario in how it relate to the basic limited liability company. With the legal forms individuality can choose to go with determine to open an establishment. When becoming a business the owner should take the time to look at one option to starting a business is Sole Proprietorship. Sole proprietorship method is to having a business and being the sole owner or one person owning the company. I have work in partnership with the project manager at a huge German bank called Citizen-Schwarz AG (C-S), in the method of assessment one year contract worth $6million. The difference of opinion over value and schedule of deliverables bubbled to the surface with the result that C-S threatened to void the agreement. To put a stop to a potentially disruptive business dispute, my job at the time was to progress a negotiating position, argue performance of the contract, and amend the obtainable agreement. One must first take go over the document that were in good deed of Span, and that would be a prepare...
Words: 1139 - Pages: 5
