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Contract Creation And Management Simulation

Tiwanna Crawford
LAW/531
Professor Fox
September 28, 2009
In today's business environment companies are choosing to renegotiate contracts rather than go to court to have the contracts enforced. A court remedy breach of contract can be lengthy, costly, and in the end no one wins. Companies such as Span Systems and Citizen-Schwarz (C-S) should have a clear understanding of contract laws, as well renegotiation practices designed to remedy breach of contract. Both parties are obligated to fulfill each part of the agreement, and failure to meet the terms of the contract by law can be consider a breach of contract. This breach can occur when parties such as Span Systems, whom fail to perform within the guidelines of the agreement.
At this point, both companies are livid and seek changes to the contract. Leon Ther wants to rescind the contract and find another company to complete the task or start fresh with the code Span Systems has completed thus far. Span Systems wants to work with Citizen Schwarz to compromise in order for both parties to continue to work together.
When parties such as Span Systems a leader in banking software and its client Citizen-Schwarz (C-S) enter into a one year legal agreement worth six million this constituted a valid contract. Span System will produced and provide updated banking software to Citizen-Schwarz within the one year contract. As with any project delays issues such as poor performance, project delays, organizational changes, and possible contract violation have arisen within the project. Such elements have led to dissatisfaction from both companies which could lead to a breach of contract if certain contract clauses are not addressed. Span Systems and Citizens-Schwarz must negotiate remedies for breach of contract in order to complete the current project and resolve any contract disputes.
Although disputes between customers and suppliers, which are not mutually resolved, could end up in a courtroom, the decision...