Week 3 Individual Assignment
Luis A. Campudoni
LAW/531 Business Law
Prof. Marlene Wilhite
February 19, 2010
Legal Issues in Contract Fulfillment Agreements are a hot and critical topic in business agreements today. How do entities engaging in business contracts conclude in a consensus of the clauses, terms, and expectations of the project seem to fail at times due to expected and / or unexpected factors. This seems to be the case of the business contract between Span Systems and Citizen-Schwarz AG (C-S) where performance and deadline problems have emerged and is presenting a risk to the project status. Due to these factors C-S is now considering closing the contract with Span Systems ...view middle of the document...
What applies to both parties is as follows:
* Lack of a proper Project Communications Plan - Like it or not, communication is the most important component within any project, the success of most projects, whether handled by a dedicated project team or a cross-departmental team, depends upon a set of crucial communication skills and techniques (Charvat, 2002). A proper communications plan in place can prevent situations concerning missing important information that should be shared among all project stakeholders. An active communications plan would have maintained all parts informed about the upcoming change of project management team, project requirements status updates, and schedule changes.
* Lack of a proper Change Request Plan – within a project environment a Change Request Plan allows the project management team to have a system in place that will serve as a guideline or step by step procedure of what to do in case there are changes within the project scope and requirements. Changes like what took place during the wait process can cause on any project changes to the requirements, budget needed, staff needed, equipment modifications, etc. These also will create a drastic change in the project schedule as well. If this process would have been in place it would have allowed the changes to go for analysis and approval of new project requirements for implementation.
These factors are of high importance in order to maintain the integrity of the project, protect the project scope and goals, and guarantee the expected results of the project. Also they are part of the well known standards of Project Management Processes and Lifecycle Plan that guarantees the success of any project. Now, there are factors that are applicable to each entity as well. Since both companies engaged in a legal contract certain aspects will protect each one of them against this type of situations and provide them with opportunities to recover and fix the present contract problems. For example,
a) Analysis Situation A – C-S has requested Span Systems to conclude all contract / project operations and to deliver everything related to the project on its current status. Under the contract clauses this could be possible under Breach of Contract under Substantial Performance of Contract where it states that if the quality of the project does not meet agreed status even if 50% of the project might be accomplished. What C-S seems to not be considering is the fact that it was their internal management changes that delayed the whole process of approving and reviewing the project. They are not considering the fact that their internal management structure’s procedures of project changes is not working properly. Based on Situation B mentioned before C-S’s Manager Leon Ther should have avoided this business confrontation by following the escalation procedure which would have protected C-S from “impatiently” requesting an improper contract break. The escalation procedure can...