Contract Creation and Management
Misty Stevens
LAW/531
April 15, 2013
Sonja Dickens
University of Phoenix
Contract Creation and Management
Developing a contract takes communication and commitment between both parties involved. Because a contract is a promise between the parties, each side should agree on the terms put on the final contract. After evaluating the simulation video between Span System and Citizen Schwartz (C-S) it was clear that both parties had acquired issues with reaching an agreement. After eight months of negotiation, it became clear that the issues the parties were having were causing delays in the contract process and could lead to risks. Span System and Citizen Schwartz need to find a way to agree on a contract that will help each party. In this paper, the author will analyze the issues between the parties to help pinpoint the points in the negotiation that need to be addressed.
Span System is one of the most prestigious banking software companies directed by Kevin Grant. Citizen Schwartz AG a large German Banker called upon Span Systems to develop the software for the company (University of Phoenix, 2002). Span System accepted the job and the two companies agreed to have the software finished within a year. However, eight months into this six million dollar contract issues started arising and neither party was happy with the way things were going with the contract negotiation. As stated above the two parties are eight months into a contract agreement when things went negative because of poor communication.
There has been poor performance and organizational changes within the company that has influenced the contract deadline. Each of these delays in the contract cause delays in projects that Citizen Schwartz is working on and result in a breach in contract between the two companies. Because of these delays, each party thought they should call in others to help negotiate a contract. Span Systems...