“Contract and Creation Management”

“Contract and Creation Management”

  • Submitted By: msmouse
  • Date Submitted: 03/18/2009 7:54 AM
  • Category: Business
  • Words: 1008
  • Page: 5
  • Views: 844

There are several risks that developed in the scenario “Contract and Creation Management”. The simulation identifies many precautionary steps to take to avoid wasted times and business practices. These procedures, if enacted correctly, can help both the companies avoid risk, decrease the amount of liabilities, and maximize their business opportunities. The main principals identified and addressed in the scenario are: 1.) contracts, formation, performance and remedies, 2.) Disclosure Requirements, and 3.) International Law. Based on the scenario, C-S is planning to enter a contract with SPAN for equipment. However, the contract has left the door open for several potential problems and issues that have not been previously addressed in the initial contract. Also, there are concerns with the quality of the products delivered, and the end user agreement documents.
According to chapter 13, contracts are the backbone to any successful business endeavor and relationship. “Contracts are the private laws of businesses, and the parties develop their own set of private laws through their contract” (Jennings, M. M). The contract guarantees that the parties involved will uphold their responsibilities or commitments to business relationships or dealings. “A contract is a promise or set of promises for breach or which the law in some way recognizes as a duty” (Jennings, M. M). The contracts have three major sources that are mostly governed under the common law. The sources may be one of the following: common law, uniform commercial code, and e-commerce contract law. With these sources, three types of contracts are possible: bilateral vs. unilateral, expressed vs. implied, and void and voidable. The contract in the scenario is a unilateral agreement. C-S offered a promise (which was the order for the job and SPAN promised to perform and provide the goods initially requested. “The elements that make the contracts legit and binding are offer, acceptance, consideration, and...

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