Contract Risk

Running Head: Contract risks between Span Systems and Citizen-Schwarz
Contract Risk between Span Systems and Citizen-Schwarz
Law 531
Kyle Overton
December 21, 2009
Contracts present risks and opportunities for both the offeror and offeree. I have identified potential risks and potential opportunities with our Citizen-Schwartz AG (Citizen-Schwarz). The identified risks and opportunities will assist us in our planning and our future planning with other clients. I have outlined measures that we can use to minimize or eliminate our risks. With respect to our Citizen-Schwarz contract I have evaluated each alternative and identified an appropriate approach we should take here at Span Systems. These steps will ensure we are prepared for the negotiations and assist in securing the contract for the e-CRM project we have been looking to land.
Contract Risks and Opportunities
A breach of contract assumed under the substantial performance clause. Substantial performance is for practical purposes the same as full performance. Delivering the product to Citizen-Schwarz unfinished and not on schedule is the basis for this breach. Knowingly representing the software as finished product constitutes fraud and scienter.
A breach of contract in regards to internal escalation procedures of disputes. This clause is part of our Alternative Dispute Resolution procedures and we should take full legal advantage of this opportunity. This breach is by Citizen-Schwarzand is an opportunity for us and a Risk for them. In negotiating with Citizen-Schwarzwe will need to use this to our advantage.
Risk Reduction Measures
In reviewing or situation I suggest we follow the below measures in reducing our risks.
  Increase number of programmers working on this project in   order to meet time performance schedules.
      Invite a Citizen-Schwarz representative to serve in a Quality   Control position here at Span Systems.
      Post daily progress reports on...