Contract Creation and Managment

Contract Creation and Management Assignment
Patrice Davis
LAW/531 Business Law
July 16, 2012
Bradley Romig

Contractual conflicts are one of the most unpleasant things a business can go through. They can add substantially to the cost of a contract, as well as nullifying some or all of its benefits or advantages. When conflict arises between a client, and supplier a relationship that has been built up over a painstaking amount of time can be ruined very quickly, and have a negative impact on the supply chain. Resulting in a time-consuming and expensive ordeal that in everyone’s interest should be avoided.
This week’s assignment is to analyze the Hotels presented in the Contract Creation and Management simulation.

Contract Creations and Management
In the simulation a problem arises between Span Systems and Citizen-Schwartz AG (C-S) a software-developing company and large German bank. The problem is level of quality and schedule of deliverables Over Eight months into the project Span Systems is behind schedule for deliverables. Along with that during the user testing stage it was discovered that there are major bugs in the deliverables which is unacceptable. Considering there is six million dollars at stake making these findings a possible hindrance for Span Systems delivering on time and up to code.  
Leon Ther a tough negotiator conveys in a letter to Grant director of projects for Span Systems that he feels it best to have all the unfinished code transferred back and, asserted rescission of the contract. However, this would be in breach of contract. A contract that states “ that neither party may cancel this agreement, in whole or in part, subsequent to more than 50 percent of the consideration having been tendered by the other”(UOP Simulation). More than half of the deliverables have already been delivered.
On the other hand if it is determined that most if not all of the deliverables have been deficient they...