Creation Of A Contract Essay

2476 words - 10 pages

Contract Risk and Opportunities
David Ortiz
University of Phoenix
LAW531
Tuesday, May 8, 2012
Prof. Lirio Bernal-Sanchez






Contract Risk and Opportunities
This report will serve as a review of the legal risks and opportunities that are present at the moment of a business formalize contracts. The report is based in a contract simulation of Info Build a software company and Majestic Hotels to establish an electronic reservation system.
A contract is an agreement that is enforceable ...view middle of the document...

A contract is a promise between two or more parties creating obligations enforceable by law (Jennings 2006). Span Systems has a one year contract with Citizen-Schwartze AG, a German bank to develop transaction software for the banking giant. AG has become dissatisfied the quality and expresses concerns regarding the late delivery schedule. AG’s most influential negotiator has threatened to rescind the contract on the basis of performance breaches. The contract between AG and Span contained clauses under performance, change control, communication, and reporting project structure. Within each section legal issues with corresponding legal principles arose. Identifying risks, how to avoid such risks, minimize liability and create opportunities are essential elements for businesses to be aware and for managers to operationalize.
Performance
The principle of standard performance within a contract details requirements for complete performance. Considering reasonable acceptable levels determines performance (Jennings 2006). A contract between Span and AG contains concurrent conditions and contemporaneous conditions. AG provides changing information to Span to develop software for their particular requirements, but Span is experiencing difficulty meeting the timelines and quality due to constant changes. After eight months AG contends Span’s deliverables are behind schedule and quality issues have arisen. The contract states Span will incorporate ordinary changes, but qualifying information is not present. As with many long term projects involving developing or building, complex execution can result in errors that creates performance issues.
Many of the legal risks identified in the scenario are a result of reduced clarity in words and phrasing. Failure in performance may, in fact, result from
A contract is an exchange of promises between two or more parties to do or refrain from doing an act, which is enforceable in a court of law. (Wikipedia) It is very important to read and understand a contract before agreeing to its term. During the negotiation process one can make changes or add but once the contract is signed and agreed upon the deal is sealed. The Contract Creation and Management simulation serves to highlight the importance of reviewing on existing or new business contract in order to avoid misunderstanding. It is best to review and study the contract before reaching an agreement to make sure the contract is beneficial for both parties and for the success of the contract.
Citizen-Schwarz AG (C-S) and Span System signed and agreed to a one year contract wroth six million dollars; however, the contract agreement has not been going as expected. Span System has not been delivering as scheduled and their quality is poor. Leon Ther, Citizen-Schwarz AG biggest influential negotiator threatened the rescission of our contract based on what he considered to be unacceptable quality of deliverables and schedule slips....

Other Papers Like Creation of a Contract

Elements of a Contract - Bus670 Legal Environment

2066 words - 9 pages Elements of a Contract Nicole Castro BUS670 Legal Environment Prof. Robert Tocker September 2, 2013 A contract of employment is a type of a contract used in labor law to attribute rights and responsibilities between parties to a contract (Blum, 2007). On the one end stands an "employee" who is "employed" by an "employer". A written employment contract is a document that someone and their employee sign which sets forth the terms

Rules of Offer and Acceptance in a Contract

2929 words - 12 pages Rules of offer and acceptance in a contract Offer and acceptance are elements required for the formation of a legally binding contract: the expression of an offer to contract on certain terms by one person (the "offeror") to another person (the "offeree"), and an indication by the offeree of its acceptance of those terms. The other elements traditionally required for a legally binding contract are (i) consideration and (ii) an intention to

The Essential Elements of a Contract and the Applicable Remedies in the Event of a Breach

3010 words - 13 pages Business I. The essential elements of a contract and the applicable remedies in the event of a breach. Four Essential Elements of a Contract An agreement must contain four essential elements to be regarded as a contract. If any one of them is missing, the agreement will not be legally binding. a. Offer There must be a definite, clearly stated offer to do something. For example: A quotation by sub-contractor to the main contractor and an

Contract Creation

1282 words - 6 pages Running head: CONTRACT CREATION Contract Creation December 7, 2009 Christine Stevenson University of Phoenix Business Law LAW/531 Miriam Gold Contract Creation University of Phoenix’s Contract Creation and Management Simulation (2009) demonstrate a conflict between Span System, a software-developing business and Citizen-Schwartz AG (C-S), a German bank. Span and C-S’s conflict is over the companies differences on

Contract Creation

1021 words - 5 pages have experience poor performance, organizational changes, poor communication and reporting and lack of project structure. All of the previous listed items have the possibility of resulting in a breach of contract. This memo examines the legal risks, opportunities presented, and alternatives for solving disputes in the Contract Creation and Management Simulation. Legal Risk and Opportunities Citizen-Schwarz AG agreed to a contract with Span

The Process of Contract Farming in India Rural Economy Is a New Concept.Docx Uploaded Successfully

692 words - 3 pages The process of Contract Farming in India Rural Economy is a new concept. The process of contract farming involves cultivating and harvesting for and on behalf of big business establishments or Government agencies and forwarding the produce at a pre-determined price. In return, the contracted farmers are offered high price against their farm produce. The role of contract farming in India rural economy is becoming more and more important, since

Contract Creation And Management

963 words - 4 pages Contract Creation and Management Assignment Paper George Van Hoosier LAW 531 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

Contract Creation and Management

879 words - 4 pages Contract Creation and Management Tyreka Banks BL/531 September 30, 2010 Brona E. Pinnolis Contract Creation and Management To: Board of Directors From: Tyreka Banks Subject: Contract Creation and Management Stimulation Date: September 27, 2010 Contract and Creation Management Most managers have to make difficult decisions within their companies daily. Each manager takes great deal of risks when making decisions for their

Contract Creation and Management

1240 words - 5 pages Ashanti Jai Law/531 March 1, 2010 Memo To: Span System Management From: Ashanti Jai Date: March 1, 2010 Subject: Contract Creation and Management Management: You all maybe aware by now that we are facing a few legal issues in regards to our contract with Citizens-Schwarz AG. The contract was not clear among both parties, and the final contract was shrouded in ambiguities. Clarity is most important when developing contracts, and is

Contract Creation and Management

1485 words - 6 pages Contract Creation and Management Jim Long University of Phoenix LAW 531 Elizabeth McVicker July 06, 2011 Contract Creation and Management Contracts are signed every day. There are contracts between two companies looking to achieve a mutually beneficial business goal. There are contracts signed between a client and an entity that will perform a service for that client. We sign contracts when we buy cars, lease equipment and get a

Contract Creation and Management Simulation

1081 words - 5 pages Contract Creation and Management Simulation In completing the Contract Creation and Management Solution it was found that it is extremely important parties involved in a contract to understand all of the elements that fall within the contract. It was noted that Span Systems and Citizen-Schwartz were not on the same page in regard to the software contract that was set forth. Each company risks the cost of litigation because of alleged breaches

Related Essays

Managing The Risks Of The Contract Creation And Management Simulation

1505 words - 7 pages In today’s business environment, organizations must ensure contracts entered into avoid risk, minimize liabilities, and provide opportunities for resolution in the event of a dispute. Not taking these considerations into effect, may result in courtroom litigation and the costly aspects of preparing for it (Jennings, 2006). In reviewing the Contract Creation and Management simulation, examples of ambiguously worded provisions were evident and

Basics Of A Contract Essay

1145 words - 5 pages A contract is an agreement that is enforceable by law. Modern business could not exist without such contracts. Most business transactions involve commitments to furnish goods, services, or real property; these commitments are usually in the form of contracts. Use of the contract in business affairs ensures, to some extent, the performance of an agreement, for a party that breaks a contract may be sued in court for the damages caused by the

Elements Of A Contract Essay

1305 words - 6 pages |Elements of a Contract | | | |Apple’s Contract | | | |11/18/2012

Formation Of A Contract Essay

2736 words - 11 pages or responsibility given, suffered or undertaken by the other” The third essential condition for creation of a valid contract, after intention and agreement (offer & acceptance) A gratuitous / bare / free promise (a promise unsupported by consideration) is not enforceable Rules re consideration: 1) consideration is required for a legally binding promise 2) consideration may be “executed” or “executory” but cannot be