Recognizing Contract Risk and Opportunities Memo
Recognizing Contract Risk and Opportunities Memo
In business; contract disputes are inevitable if the contract clause is unclear and confusing. These clauses are left for interpretation by individuals, benefitting the party that created the risks of breaches and dispute of the contract with the other party of the contract. These risks are avoidable risk that can become costly in money and time; it can also have a devastating outcome on the company. Constructing a language that will result in accurate discovery and assessment of what potential risks are associate with a contract will assist with motivating, not obstructing, and business.
Span Systems started a $6 million banking software development project for Citizen Schwarz AG eight months ago. The IT outsourcing director, Leon Ther, states that the contractually agreement regarding performance and quality are severely missing; demands on the release of all partially finished software; and he claims that Span Systems has breached and maintain the rescission of the contract. The rescission will impact a substantial and more profitable eCRM project with (CS) that is in Span Systems’ profitable pipeline.
The memo will go into the possible breach of the contract that may arise between (CS) and Span Systems; recognize and reduce the risk associated with the issues; recognize and seek the benefits of any opportunities presented by the issues. The objective is to be able to come to an amicable agreement to execute as best as possible to reach the goals of CS. Furthermore; CS needs to remain a customer of Span Systems for forthcoming projects.
Contractual Clause
Substantial Performance; is one party of the contract claims the work performed by the other party is not fulfilling the promise of the contract (Jennings, 2006). The contract involving CS and Span Systems states; that either party may rescind from the contract if half or more of the consideration is... [continues]
Recognizing Contract Risk and Opportunities Memo
In business; contract disputes are inevitable if the contract clause is unclear and confusing. These clauses are left for interpretation by individuals, benefitting the party that created the risks of breaches and dispute of the contract with the other party of the contract. These risks are avoidable risk that can become costly in money and time; it can also have a devastating outcome on the company. Constructing a language that will result in accurate discovery and assessment of what potential risks are associate with a contract will assist with motivating, not obstructing, and business.
Span Systems started a $6 million banking software development project for Citizen Schwarz AG eight months ago. The IT outsourcing director, Leon Ther, states that the contractually agreement regarding performance and quality are severely missing; demands on the release of all partially finished software; and he claims that Span Systems has breached and maintain the rescission of the contract. The rescission will impact a substantial and more profitable eCRM project with (CS) that is in Span Systems’ profitable pipeline.
The memo will go into the possible breach of the contract that may arise between (CS) and Span Systems; recognize and reduce the risk associated with the issues; recognize and seek the benefits of any opportunities presented by the issues. The objective is to be able to come to an amicable agreement to execute as best as possible to reach the goals of CS. Furthermore; CS needs to remain a customer of Span Systems for forthcoming projects.
Contractual Clause
Substantial Performance; is one party of the contract claims the work performed by the other party is not fulfilling the promise of the contract (Jennings, 2006). The contract involving CS and Span Systems states; that either party may rescind from the contract if half or more of the consideration is... [continues]
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