“Contract Creation and Management Simulation”
Bus Law 531
August 30, 2011
Contract Creation and Management SimulationThe simulation shows a confutation between two software-developing companies, Span Systems, and its customer Citizen-Schwartz AG (C-S), a largeGerman bank. The two companies are in difference of opinion over the quality and timeliness of deliverables. There have been major bugs found by C-S during testing and are worried about Span not fulfilling the one-year contract, which is worth $6 million. Span main apprehension is obtaining a larger contract with e-CRM, which is in line with result of the current contract. C-S has requested all code and asserted the rescission of the contract.
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Performance of Contract “The contract states, states that 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’,(UoP Simulation). Since C-S requested all code, it is in breach of contract because more than 50 percent of the deliverables have been delivered. By looking at the big picture, the e-CRM contract, Span is willing to discuss and give concessions regarding the quality issue. Internal Escalation Procedure for Disputes The existing agreement covers the internal escalation guidelines regarding any conflicts. The parties believing itself aggrieve shall call for advanced management involvement in writing to the other party (UoP Simulation). C-S requesting all break down of any ongoing code hit with violation of the current contract. Span is willing to set this aside if C-S withdraws its request.Requirement Changes Change Management. The current contract is written to cover a one-year time frame. C-S user and system requirements have grown, especially in the software arena. The original contract should have addressed any out of the ordinary changes, but it didn’t....
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