Contract Negotiation

Contract Negotiation Memorandum
Greg White
April 25, 2011
Pamelya Herndon

To: Kevin Grant Project Director
CC:   Harold Smith Legal Counsel
From:   Greg White Project manager
Subject:   Negotiation of contractual considerations with Citizen-Schwarz AG
In consideration of the communication from Leon Ther and his request to rescind the current contract I am writing this memorandum.   The intent of this memorandum is to identify potential opportunities within existing clauses of the contract that would serve as starting points of negotiation to avoid litigation.   The selected clauses will promote leverage for Span in the negotiation process as we offer plausible actions to remedy the conflict.   Finally, it is the intent of this memorandum to offer amended clauses to the existing contract that should dispel ambiguities and better define our obligations in fulfilling the contract.
First, allow me to suggest that it is to our advantage to negotiate this resolve instead of seeking a court settlement and likewise it is to Citizen-Schwarz’s advantage to allow us to complete the project as we have contracted.   I believe we have properly established a negotiation process that was accepted in the original contract under the dispute clause.
I have identified five potential areas that could serve as negotiation points in considering breach of contract.   Each of these areas offers both pros and cons when considering the potential use in negotiation.   The first clause is found in the area of substantial performance.   C-S suggests that they wish to rescind the contract.   Based on the principle of performance, the contract, according to the Contract Creation and Management simulation (University of Phoenix, 2002, p. 7), specifies that” neither party may cancel this agreement, in whole or in part, subsequent to more than fifty percent of the consideration having been tendered by the other.”   The disadvantage to the argument is a discussion of quality of deliverables...