Contract Creation and Management Legal Risk

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Contract Creation and Management Legal Risk
Willie Beasley
University of Phoenix
December 7, 2009

Contract Creation and Management Legal Risk


      To: Span System Project Management Team

      From: Willie Beasley, PM

      CC: Span Legal Team

      Date: December 7, 2009

      Re: Legal Risk associated with Citizen-Schwarz AG Project

      As most of you are aware about eight months ago, Span Systems entered into a 6 billion dollar bilateral contract with Citizen – Schwarz AG (C-S) to develop and implement their new banking software. (University of Phoenix, 2002) A bilateral contract is defined as “one in which both parties promise to perform certain things” (Jennings, 2006, p. XX).   The basis of the contract is that Span Systems has promised to provide C-S with new banking software that meets their needs and expectations while meeting key deadlines.   C-S has agreed to pay Span System for their services while at the same time providing timely feedback and representation to help Span Systems meet their deadlines. In the past few months, there have become some concerns regarding the continuation of the contract based upon performance and missed deadline issues. Because of these concerns, C-S has sent notice that they would like to escalate the contract and sever all business relationships including the pending order of C-S’s e-CRM project. In any contract there is always the potential for disputes; however it is important for Span System to analyze the legal risk associated with the creation of this contract and how to manage that risk. The three major areas that Span needs to focus on are the following: ambiguity of the contract, timeliness and quality of deliverable items, and intellectual property rights.
      The contract between Span and C-S was developed to try and protect the interest of both Span and C-S. Based upon this principle, the...