Contract Creation and Management Simulation
April 30, 2013
Span Systems is a banking software company who currently is under contract for the installation of new software for a large German bank called Citizen- Schwarz AG. Currently Citizen Schwarz is not pleased with Span Systems’ progress and has asserted they want to rescind the contract amongst them. Citizen Schwarz feels that Span Systems failed to meet their dead lines, did not report on their progress as per their contract directed, and the quality of delivered products so far has been poor due to the system’s malfunctions. According to the Contract Creation and Management simulation (UoP, 2013), I am acting in the capacity as the project manager for Span Systems. This paper aims to provide an analysis of the issues presented in the simulation. The paper will discuss how the contract formation was achieved in the simulation, how the contract in the simulation should have been administered and what were the methods used for the contract dispute resolution. Lastly, I will discuss what I would have done differently if I had to make those decisions again in simulation. Legal Issues
I, as the project manager for Span Systems was tasked to go over the contract and identify possible defenses for our current situation with Citizen Schwarz and then use them to renegotiate a new contract. I felt Citizen Schwarz was breaching the contract under “substantial performance” because more than 60% of the time of the contract has passed. However, on a negative note to that claim, only about 40% of the actual product has been delivered. In our defense, the only reason 40 % was completed was due to the fact that Citizen Schwarz was constantly bombarding the contract with unexpected and complex changes (UoP, 2013). This made it unrealistic to meet the original agreed timelines and budgets. This leads me to our second defense which is the breach of the contract...
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