Contract Creation and Management
The contract and management simulation is about a dispute between a software-developing company Span Systems and Citizen-Schwartz AG a large German bank. Citizen-Schwartz is a customer of Span Systems who is attempting to break into the American banking system. Citizens-Schwartz is dissatisfied with the quality and timeliness of deliverables from Span Systems and wishes to terminate the contract.
Although Citizen-Schwartz wishes to terminate the contract, the original contract states, “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). Citizen-Schwartz has made changes to the original contract although they have received more than half of its products. Due to the changes in the contract this has caused problems and Span Systems with delivering materials in the quality of the materials. In order for this not to happen again the following things are being recommended for the remainder of the contract. : A contract negotiation board needs to be established. This board will consist of parties from both Span Systems and Citizen-Schwartz. Each member of the board will be responsible for coming to an agreement for any changes made to the contract. Both sides will have to either accept or reject the changes or come to a compromise. The second recommendation is to ensure that the products are delivered on time. The necessary changes needs to be made in order to accomplish this. If it means hiring additional personnel this should be implemented. After all the changes have been implemented and the new contract is amended Citizen Schwartz should be penalized financially if additional changes need to be made. Each time changes have to be made Citizen-Schwartz should be penalized $1000 per change, no more than $5000 per quarter. Span Systems has to guarantee that they will keep their end of the...