Recognizing Opportunites

Recognizing Contract Risk and Opportunities

When there is a promise exchanged between two or more individuals they enter into a contract, weather it is to refrain from doing an act or enter into an agreement that can be enforceable in a court of law. Before agreeing to the terms of a contract it is extremely important to read and understand the literature that is in the contract. While the two or more parties are negotiating on the contract they are able to add or change anything that is pertaining to the contract, but once it is agreed upon and signed the deal is sealed. The Contact Creation and Management simulation shows how important it is to review the existing contract or a new business contract to avoid any misunderstanding. The best philosophy is for both parties to study and review the contract, so that there can be success with the contract, and it can turn beneficial for both parties.
There was a contract that was signed and agreed upon between Span System and Citizen-Schwarz AG that is worth six million dollars, but the agreement that was signed has not been going the way it was expected. One of the reasons why it has not been working is do to Span System not delivering there end of the bargain, and the poor quality. The Citizen-Schwarz AG most influential negotiator Leon Ther had threatened the rescission of the contract do the poor quality of deliverables and schedule slips. After negotiating Span System was able to modify parts of the contract clauses and were able to come to terms of the agreement. Both parties did not want to rescission the contract or want to settle the problems in court. Both Span System and Citizen-Schwarz AG did not want to spend the high cost to settle the dispute in court. That is why Span’s manager came to a decision to write this memo to Citizen-Schwarz AG, so he can discuss the risks that came up and address ways that the issue would be able to get resolved and avoid or limit future liabilities.
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