Contract Creation and Management Simulation

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Contract Creation and Management Simulation
Danielle R. Davenport
LAW/531 Business Law
October 29, 2012
John Fossum

Contract Creation and Management Simulation
In completing the Contract Creation and Management Solution it was found that it is extremely important parties involved in a contract to understand all of the elements that fall within the contract. It was noted that Span Systems and Citizen-Schwartz were not on the same page in regard to the software contract that was set forth. Each company risks the cost of litigation because of alleged breaches of contract. In an effort to remedy the situation, Span Systems amended the contracts to work for both company’s and to ensure that no litigation proceedings would have to take place.

Span Systems and its customer Citizen-Schwartz AG (C-S), a large German bank, are in a major confrontation about legal issues that result from a breach of contract. The company’s are in difference of opinion over the quality and timeliness of deliverables of the company’s software. The software that Span Systems has delivered to C-S was questionable in the regard that the software had major bugs that were discovered during the testing process of C-S. C-S is concerned about the contract between them and Span Systems, because it is worth $6 million. C-S has requested that all codes and asserted the rescission of the contract. This is concerning to Span Systems because the purpose of this contract is to advance to a larger contract with e-CRM which is based on the success of the C-S contract. The contract between both companies states “that neither party may cancel this agreement, in whole or part, subsequent to more than 50 percent of the consideration having been tendered by the other” (UoPX Simulation). With C-S requesting that the code be relinquished to them they are possibly setting themselves up to go through litigation because this is another major form of breach of contract. It is the responsibility of...
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