Contract Risk and Opportunities Memo
In this paper I have to prepare a memo to discuss what legal risks and opportunities are in the Contract Creation and Management simulation. Also identify the legal issues present and note legal principles and determine what I would do as the project manager for Span Systems would do to avoid those risks, minimize liabilities, and benefit from opportunities. Assess alternatives to resolve these problems identified in the simulation and give an explanation on which alternative approach that would best solve the problem between Span Systems and Citizen-Schwarz AG (C-S).
TO: KEVIN GRANT. DIRECTOR
FROM: KIMBERLY TATE, ...view middle of the document...
Each clause has its pros and cons. The first clause, “Internal Escalation Procedure for Disputes,” pros are that C-S has is in clear violation of its legally binding agreement and C-S has no cons unless they contest the contract. The second clause, “Communications and Reporting,” pros are the main reason for the delivery delay is due to the project management structure changes at C-S. This is the reason why they want to cancel their contract with us and we cannot allow this to happen. The cons are that there is no evidence of the delay due to the turnaround problems at C-S. The third clause is the “Intellectual Property Rights.” The pros of this clause is that all the work and afford that was put into this project still belongs to us until we are paid in full for all the work that has been completed before any information can be released to C-S. The down side is that C-S can make the payment and then turn around and get the Intellectual Property Rights (IPR) to transfer and cancel the contract (Contract Creation and Management Simulation (2009)).
I have taken my ideas to our attorneys and they don’t think that this will be a good time to miss with the IPR card. But in December we were discussing our clauses to the attorneys our marketing manager in London that C-S is taking with an Indian software developer about finishing the project that we have started one that get the codes from us. This is clearly a violation in the contract the Citizen-Schwarz AG has entered in with us. We are not about to allow this to happen so I have to reevaluated the clauses’. I decided to change the first clause which was the Breach of Contract under “Internal Escalation Procedure for Disputes” to the Breach of Contract under “Requirements Change.” This means that things have changed since the original contract and are unable to meet the deadlines and this could play a major role in whether or not our claim is valid. The attorneys approved my decisions to the contract clause so I sent them to Leon Ther at Citizen-Schwarz. His response to my email in reference to the quality and scheduling was that he agrees with the e communication and reporting clause but finds no confirmation to the claim. Ther also assure us that there was no violation to the IPR in reference to our copyrights. Leon does not like the requirements change clause of the contract because he claims that there has not been any major changes to...