Law 531 Contract Creation and Management

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Contract Creation and Management
Johnny B Good
LAW/531
April 30, 2012
Professor Law Contract Creation and Management This week assignment is to provide analysis on the Contract Creation and Management simulation provided in the University of Phoenix (UOP) materials website. The simulation involves two companies; Span Systems, a California-based custom e-banking software developer and Citizen-Schwarz AG (C-S), a Stuttgart-based bank with revenues of over $20 billion. Through C-S’s regional offices in the United States, they contracted out Span Systems to develop a Java-based transaction processing software so they can enter the competitive $640 billion retail financial services market in America (UOP, 2002). The contract between Span and C-S is for one year and worth $6 million. This contract is Span Systems’ biggest and most prestigious banking software project to date and is targeting C-S’s bigger e-Customer Relationship Marketing (CRM) order in the future. Span System’s chances of getting the order hinge on the performance of this contract. In this simulation, I act as Span Systems’ project manager and must deal with problems that have risen or risk losing this contract and any future business relationship with C-S.

Eight months have passed and the project has progressed but C-S’s Information Technology Outsourcing Director is now involved. C-S states:
- Span’s deliverables in the last couple months have been behind schedule and the quality has been unacceptable, with major bugs being detected in the user testing stage (UOP, 2002).
- C-S contents that they cannot afford the schedule slip because of its deadline for the release of the transaction software in the market (UOP, 2002).
- C-S wants the immediate transfer of all unfinished code and the contract rescinded (UOP, 2002).
Although Span Systems agrees with the statements, they claim it’s not their fault and states the following:
- Requirements have grown disproportionately since



References: Cheeseman, H. (2010). Business law: legal environment, online commerce, business ethics, and international issues (7th ed.). Upper Saddle River, NJ: Prentice Hall. University of Phoenix. (2002). Contract creation and management simulation [Computer Software]. Retrieved from University of Phoenix, Simulation, LAW531 – Business Law website.

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