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Contract Creation

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Contract Creation

Law-531 Business Law
October 31, 2011
Whitney Bell

Contract Creation Span Systems is the leading banking software companies located in California. . Citizen-Schwarz AG (C-S) contacted Span Systems to develop s software program to assist with there transactions. C-S is a German bank, which the revenues increased to $20 billion. A one-year contract was signed by the two company’s estimation for the software would be $ 6 million dollars. If the project goes well, C-S would seek further business with Span System for future projects. After the software project began, Span Systems' discovered that the deliverables were behind on there scheduling and the quality of the deliverables were unacceptable. The outsourcing director stated to transfer the unfinished code to C-S to find another company to complete the job. He also requested that the contract that was signed be voided. He wanted to void the contract and find another company to complete the task. Span Systems wants to work with C-S to fulfill their contract in order for both parties to continue to work together. After reviewing the contract there are five contract provisions signed by both parties. The five provisions are changed control, performance, procedure for disputes, and communications, and reporting. Span Systems and C-S noticed the five contract provisions were not sufficient to cover the unforeseen requirements. So provisions needed to be made. The simulation will demonstrate the contract laws, dispute, communication, and performance this is needed to have the company meet the required terms. Contract laws state a promise between two or more parties. The promise made is an agreement, which will allow. A contract does not need to be a written document, formal, and those who make a contract do not have to use the word contract to

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