Contract Creation and Management Assignment Paper
George Van Hoosier
June 26, 2012
Dr. Beverly Spencer
Contract Creation and Management
The scenario presented is on contractual conflicts. In summary, a software development company and a hotel company entered into a business partnership to develop an electronic reservation system for the hotel company. The groundwork of the plan changed and obfuscated what was expected by both parties. These changes were not communicated well enough, both internally and externally, to accommodate these changes (University of Phoenix, 2002).
This case presented how a contract between parties was prepared, but what was required was ...view middle of the document...
Valid Enforceable contracts require four basic elements. The elements are agreement between the parties, some form of payment or consideration for the agreement, both parties have contractual capacity, and the objective of the agreement is legal. The actions between Span systems and C-S represent a valid enforceable contract. The contract type is bilateral informal express contract. The offeree span systems began to fall short on completing the contract requirements, and as a result the contract became an executory contract.
Span systems does not have a defense to the enforcement of the contract, since the contract is informal, and this type of agreement does not require a formal contract. A defense against the genuineness of assent would be difficult to win, since undue influence would be difficult to prove. Although the possibility to void the contract was possible, more than 50% of the contract has been tendered. The contract has a clause for internal dispute resolution, requirements change, communications and reporting, and an intellectual property clause, that provides alternatives to law suits to resolve issues. These contracts allow both parties the opportunities to align actual performance with expected performance of both parties. These clauses provide opportunities to resolve differences before pursuing legal action. This is a fair contract to both parties that allows for contract adjustments as requirements change.
Span systems should have used the breach of contract under substantial performance to keep C-S from contracting another software vendor. Exercising this clause protects the substantial performance of the project. If C-S signed a contract with another company, then C-S would have been in breach of the contract.
Another defense to prove that C-S is in breach is the requirements change clause of the contract. The amount of changes has been a cause for project delays.
The last defense for Span systems is to exercise the communications and reporting clause. A meeting will help clarify the points of issue between the two companies, and help Span systems present that the cause for...