...Contract Creation and Management Contract Creation and Management It is important for businesses to effectively create and manage contracts. A contract serves as a legally binding agreement between two parties (Cheeseman, 2010). However, having a signed contract does not mean each party will fulfill the obligations as stated within the contract. Therefore, businesses must implement an effective contract management plan to assure each party of the contract fulfills the obligations as outlined within the contract. Presentation of the Problem Citizen-Schwartz Ag is a large German bank that has contracted with Spam Systems for the development of banking software system. The contract is a one year contract worth $6 million dollars. Citizen-Schwartz has not been satisfied with the progress of Spam Systems meeting the contractual obligations for the development of the new banking system. Citizen-Schwartz has claimed Spam Systems is not producing a quality product that is meeting the timelines established with the contract. Spam systems claims that the requirement changes have exceeded the ordinary conditions established in the contract and this has led to the inability of Spam Systems to meet the timeline. Because the ordinary conditions have exceeded expectations, Spam Systems has begun delivering a lesser quality product in a means to meet the contracted timelines. The inability of Spam Systems to deliver a quality product in the expected timelines...
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...SHELLY RESENDEZ completed the Contract Creation Simulation for LAW/531 with the following responses: To enforce a contract, the following four requirements must be met. Determine if each requirement has or has not been met, and then explain your answer. Question 1: Offer: No Response: Bob offered to sell the car to MIke for $25,000. The offer was bound by the offeror. Terms were definitely and reasonably certain. The offer was communicated to the offeree. Now in general an offer is not effective until it is actually received by the offeree. Now when Bob called to tell him two write two checks Mike denied the offer and made a counter offer since the property was not even shipped or received to the offeree. Question 2: Acceptance: No Response: Mike accepted the offer of $25,000. Even though MIke agreed at first he changed his mind the following day. Question 3: Consideration: No Response: The offer of $25,000 was accepted by Mike until he counter offered for $20,000 changing the contract. Now the money was never received. Consideration must be given before a contract can exist. Question 4: A Lawful Object: No Response: The lawful object was the automobile offered but it was never given or received so the contract never existed Question 5: Do the parties have a contract at this point? No Why or why not? Response: no contract has been agreed upon just a counter offer by Mike. Question 6: Does U.C.C Article 2 (Sales), Section 201 apply in this situation...
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...Contract Creation and Management Cheeseman (2010) stated, “Express agency is the most common form of agency. In an express agency, the agent has the authority to contract or otherwise act on the principal’s behalf, as expressly stated in the agency agreement. In addition, the agent may also possess certain implied or apparent authority to act on the principal’s behalf”(p.461). A business owner needs to clearly define the responsibilities and authority that each employee holds. The business owner also needs to clearly state which individuals within the organization have the authority to enter into a contract on the organizations behalf. The author will discuss “The Nature of Agency video” and issues regarding express agency. The Nature of Agency video In the scenario described in “The Nature of Agency video” Non-Linear Pro sued Quick Takes Video for breach of contract on a three month lease agreement. Quick Takes Video leased some video editing equipment from Non-Linear Pro that didn’t operate according to Quick Takes Video expectations. Apparently when the equipment was delivered Janet an employee of Quick Takes Video mistakenly signed a three month lease agreement thinking it was a shipping confirmation request. The management of Quick Takes Video called their legal representative and discovered that it may be reasonable to assume by a third party that Janet had the authority to enter into a contract on behalf of the organization. Authority Within an organization employees...
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...The Contract Creation and Management simulation presented two different business creation contract situation that displayed issues within business contracts (University of Phoenix, 2002). One contract creation presented was difficult to work around the legality because the contract was unclear and decision made seemed hard to reach. Another contract creation example displayed similar core components of issues within the contract and its management but solution were able to be rectify this contract disputes between parties. Contract creation and management of those contracts need to be properly formulated and reviewed before agreeing and signing any contract. To begin the first simulation analyzed was a contract creation and management dispute between InfoBuild and Majestic hotels. Some if the issues presented could have been avoided if a firm review processes would have been performed when creating the contract between the two parties. As the contact between InfoBuild and Majestic was being created, agreements were difficult to reach making for a rough contract of negations. As the creation of the contract was signed and established in the line of business between the two parties, breaches within the contract began to be seen. The issues presented in this simulations breach of contract was the “quality of deliverables, delivery of schedule slips, and ever-growing end-user requirements” (University of Phoenix, 2002). InfoBuild was contracted to set up the programming...
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...Contract Creation and Management Classic Payroll LAW 531 December 14, 2012 Contract Creation and Management Creating a contract to perform services between two businesses requires both parties to consider stipulations presented to protect the respective companies. An offer is provided for the purchaser to accept and specifications on the price and timeline of the deliverables are confirmed. In the simulation regarding Span Systems and Citizen-Schwarz AG (C-S), a one-year contract worth $6 million dollars for the development of a software package was presented to negotiate through issues and amend the contract. Contract Formation The wording used to create a contract should carefully be considered to ensure one can legally void the contract because of a breach in terms. The contract created between the two companies had open terms in several areas because changes to requirements were anticipated on a project of this magnitude. The contract allowed changes in cost, timeliness, and deliverables on both sides. The contract included clauses that did not allow either party to rescind the contract for performance once 50% of the consideration had been tendered, internal escalation procedures to be followed in case of a dispute progressing through different levels of management, timelines for requirement changes to be supplied for adjustments, specifics on how monitoring would be reviewed from...
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...Contract Creation and Management Assignment Paper George Van Hoosier LAW 531 June 26, 2012 Dr. Beverly Spencer Contract Creation and Management The scenario presented is on contractual conflicts. In summary, a software development company and a hotel company entered into a business partnership to develop an electronic reservation system for the hotel company. The groundwork of the plan changed and obfuscated what was expected by both parties. These changes were not communicated well enough, both internally and externally, to accommodate these changes (University of Phoenix, 2002). This case presented how a contract between parties was prepared, but what was required was not clear to either party. To further complicate matters, as the project requirements became clearer, no contract revision occurred to discuss how the expanding requirements could be negotiated. The increasing requirements and scope of work meant the original resources assigned to the project were rapidly becoming insufficient. Project delays and poor quality products were the result. Instead of addressing the changes and the need to revisit and negotiate the changing requirements, and additional compensation, the two parties filed suits and counter suits against each other (Cheeseman, chapter 16, 2010). The scenario points out how devastating the resultant legal costs were to both parties, and how the end result was a failed project that could have been resolved with less contract ambiguities...
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...Contract Creation and Management Contracts are made, negotiated, and broken every day in business situations. They are the backbone of many businesses proposals and they set the standards for which they get the process started. There are many issues that have to be negotiated and discussed for a contract to work for both parties. Both parties must have the ability to communicate and have the patience to work through many of the complications that may occur during the process. This paper will discuss the analysis of the contract problems between Span systems and Citizen – Schwarz AG. After reviewing the simulation we have to come to the following response and conclusion to the issues at hand. Being the project manager in this simulation it would show that I would be trying to keep this contract with C-S so that we will be in the running for the other contract that may be in play. The problem that has occurred is the fact the process has not being completed at a quick enough pace for C-S and they want to get out of the contract and look into changing to another company located in India. This process is not a good move for C-S due to the fact that they have made changes and Span has compiled with every move that have made. The only problem is that Span has also had some internal programming issues that will have to be handled so that C-S can see that we are moving forward with the process. “Good negotiators do their homework. Here are some tips for making your next negotiation...
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...Contract Creation and Management Brian J Louf LAW/531 July 31, 2012 William C Johnson J.D. Contract Creation and Management The Nature of Agency video continues the story of a business relationship between Quick Takes Video and Non-Linear Pro. Quick Takes, dissatisfied with the current video editing software owned initiates contact with a salesperson from Non-Linear Pro to discuss a software product that Quick Takes believes may be a solution for updating their present equipment. The first meeting between the two companies becomes the basis of a subsequent law suit by which both parties dispute the terms of agreement in the use of the software product. The issue is one that involves determining if a contract is formed. Additionally the definition of agencies within a small business must be examined to determine if the actions of a Quick Takes employee may in fact validated the terms of a contract. Elements of a Contract In determining if a contract has been formed between two parties, the elements of a contract are examined to determine its enforceability. For a contract to be enforceable, the following four basic requirements must be met: agreement, consideration, conceptual capacity, and lawful object (Cheeseman, 2010, p. 154). During the initial meeting Non-Linear Pro (offeror) made an offer to an owner of Quick Takes (offeree) the use of an editing software on a one-month trial basis. Quick Takes accepted the offer with the understanding that the trial would...
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...Contract Creation and Management The simulation begins in the middle of a major dispute between a software-developing company, Span Systems, and one of its customers, Citizen-Schwartz AG (C-S), a large German bank. The two companies are in dispute over the quality and timeliness of deliverables. There have been major bugs found by C-S during testing and are worried about Span not fulfilling the one-year contract, which is worth $6 million. Span's main concern is securing a larger contract with e-CRM, which is tangent on the outcome of the current contract. C-S has requested all code and asserted the rescission of the contract. Future Business Opportunities Performance of Contract The contract states, "… 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). Since C-S requested all code, it is in breach of contract because more than 50 percent of the deliverables have been delivered. By looking at the big picture, the e-CRM contract, Span is willing to discuss and give concessions regarding the quality issue. Internal Escalation Procedure for Disputes The current contract covers the internal escalation procedure for disputes. The party believing itself aggrieved shall call for progressive management involvement in writing to the other party (UOP Simulation). C-S requesting all finished and unfinished code is a direct violation of the current contract. Span...
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...Contract Creation and Management In the University of Phoenix simulation (2011), Contract Creation and Management the author of this paper has become the project manager at Span Systems, leading its biggest and most prestigious banking software project with Citizen-Schwarz a large German bank. Span and C-S has agreed to a one-year contract that is worth $6 million dollars. In the past months Span and C-C’s has had conflict over the differences on the quality and dates received of deliverables. In the past months C-S’s deliveries have been late and the qualities are inadequate with substantial errors. With all of the delays and concerns; C-S is demanding for unfinished code and rescinding of the contract. The CEO at Span has advised that they would like to settle this dispute with C-S amicably. Span does not want to lose the contract; they want to negotiate new terms for the existing contract to resolve the quality and deadline issues. According to the University of Phoenix simulation (2011), Contract Creation and Management the contract states, “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.” More than 50% of the deliverables were delivered; C-S violates the contract by asking for the unfinished code and rescinding of the contract. In the month of December Span evaluate and select negotiation points from the contract clauses that pointed out Breach of Contract under ‘Internal...
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...Contract Creation and Management Jim Long University of Phoenix LAW 531 Elizabeth McVicker July 06, 2011 Contract Creation and Management Contracts are signed every day. There are contracts between two companies looking to achieve a mutually beneficial business goal. There are contracts signed between a client and an entity that will perform a service for that client. We sign contracts when we buy cars, lease equipment and get a new cell phone. So what happens when one of the entities in the agreement does not feel like the other side is holding up their end of the bargain? In this paper, a situation will be discussed where that exact scenario takes place. First, the situation which started the contract issues will be looked at. Then the negotiation process will be analyzed from initial talks through to agreement. Finally, the paper will look at any amendments that will be added to the new contract. Span Systems and Citizen-Schwarz AG Span Systems has entered into a one year, six million dollar contract to supply software solutions to Citizen-Schwarz AG (C-S), a large German bank. This is an important contract on its own but there is also a larger e-CRM contract down the line which hinges on Span’s performance during this contract. Eight months into the contract, there are issues on both sides. C-S had been receiving product with major bugs in it and the product has been delivered behind schedule. Spar maintains that the requirements have changed drastically...
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...Contract Creation and Management Simulation LAW/531 January 4, 2012 Contract Creation and Management Simulation Eight months into a 1-year contract between Span Systems, a California e-banking software developer, and Citizen-Schwarz AG (C-S), a large German bank looking to break into the retail financial services market in America (University of Phoenix, 2009), C-S suddenly sent a letter to Span stating that deliverables were behind schedule and unacceptable. They wanted to rescind the contract and have all unfinished code transferred to them (University of Phoenix, 2009). The letter did not mention any of the problems that C-S was experiencing even though Span claims they have contributed significantly to the delays and quality issues. Span does not want to lose this contract because there is a bigger C-S contract in the works that Span would like to receive. They need to do some negotiating to be able to complete the current contract to C-S’s satisfaction and compete for the future contract. Breach of Contract Internal Escalation Procedure for Disputes According to the current contract, should any party believe itself aggrieved, that party shall file, in writing to the other party, for progressive management involvement. Depending on what level of management was requested to review the dispute, there was an associated allotted time period that needed to be observed. This was obviously violated when C-S demanded any unfinished code and threatened to rescind the...
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...Contract Creation and Management Simulation In completing the Contract Creation and Management Solution it was found that it is extremely important parties involved in a contract to understand all of the elements that fall within the contract. It was noted that Span Systems and Citizen-Schwartz were not on the same page in regard to the software contract that was set forth. Each company risks the cost of litigation because of alleged breaches of contract. In an effort to remedy the situation, Span Systems amended the contracts to work for both company’s and to ensure that no litigation proceedings would have to take place. Span Systems and its customer Citizen-Schwartz AG (C-S), a large German bank, are in a major confrontation about legal issues that result from a breach of contract. The company’s are in difference of opinion over the quality and timeliness of deliverables of the company’s software. The software that Span Systems has delivered to C-S was questionable in the regard that the software had major bugs that were discovered during the testing process of C-S. C-S is concerned about the contract between them and Span Systems, because it is worth $6 million. C-S has requested that all codes and asserted the rescission of the contract. This is concerning to Span Systems because the purpose of this contract is to advance to a larger contract with e-CRM which is based on the success of the C-S contract. The contract between both companies states “that neither party may...
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...Contract Creation and Management Simulation The simulation begins in the middle of a major dispute between a software-developing company, Span Systems, and one of its customers, Citizen-Schwartz AG (C-S), a large German bank. The two companies are in dispute over the quality and timeliness of deliverables. There have been major bugs found by C-S during testing and are worried about Span not fulfilling the one-year contract, which is worth $6 million. Span's main concern is securing a larger contract with e-CRM, which is tangent on the outcome of the current contract. C-S has requested all code and asserted the rescission of the contract. Future Business Opportunities Performance of Contract The contract states, " 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). Since C-S requested all code, it is in breach of contract because more than 50 percent of the deliverables have been delivered. By looking at the big picture, the e-CRM contract, Span is willing to discuss and give concessions regarding the quality issue. Internal Escalation Procedure for Disputes The current contract covers the internal escalation procedure for disputes. The party believing itself aggrieved shall call for progressive management involvement in writing to the other party (UoP Simulation). C-S requesting all finished and unfinished code is a direct violation of...
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...Name LAW/531 - BUSINESS LAW San Bernardino Campus October 04, 2011 Contract Creation and Management Assignment Performance Citizen-Schwarz AG Needs and Risks C-S established zero tolerance in defective product from Span Systems. Reportedly there have been an unacceptable five defects or deliverable. There has been a five day release of software to the public from the scheduled date. C-S can expected the risk of losing customers to the increase in defects and paternally delay the transaction software in the market. Currently, delivery is two days overdue and will ultimately impact C-S’s deadline for the software release. Revised Provision In order for C-S and Span Systems to be successful, they will need to reach an agreement to a contract revision that will incorporate the quality assurance expected from the manufacturer. The agreement will constant review and schedule provisions and Span Systems will have the opportunity to review S-S requirements during the process of designing and building the software package. In order to achieve zero tolerance, the test period will be supervised closely for modifications or adjustments. A development goal on deliverables stands at one defect and zero schedule slips. To achieve this, quality assurance monitoring must be conducted continuously. There will be a 50% schedule performance agreement will be replaced with 'payment will be based on work completed at...
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