Recognizing Contract Ã¯Â¿Â½ PAGE \* Arabic Ã¯Â¿Â½1Ã¯Â¿Â½
Running Head: Recognizing Contract Risk and Opportunities Memo
Recognizing Contract Risk and Opportunities Memo
University of Phoenix
LAW 531 Business Law
Instructor: Michael Tancredi
June 3, 2010
Workshop 3, Assignment 3
TO: Span Systems Managers
FROM: Milton Ramos
DATE: June 3, 2010
SUBJECT: Recognizing Contract Risk and Opportunities
CC: Kevin Grant, Harold Smith,
Span Systems has settled a dispute on a six million dollar contract with Citizen-Schwartz AG (C-S) one of Span Systems largest German banking customers. This conflict and misunderstanding placed on hold the potential e-CRM contract and threaten to engage Span Systems in legal action to protect intellectual property, our company image and the need to develop a defense for breach of contract. Leon Ther, C-S main negotiator threaten to rescind the transactional software contract for failure to deliver on time, for the high number of plaguing quality issues, and the problems found during the testing phase.
In addition to the rescinding of the contract Leon demanded the release of all unfinished code for the transaction software still owned by Span.
Milton Ramos, Span Systems leading negotiator was assigned the responsibility to save the contractual agreement, mend the relation ship, evaluate Span's current position, provide supporting documentation, and discuss Span's position in the breach of contract claim. Making amendments to the existing contract and removing all ambiguous language that can be interpreted in an unreasonable manner against Span System was a key focus for corrective actions to limit the exposure on future disputes.
As a result of Milton's findings and recommendations, project managers and directors will be under instruction to use board of review sessions for contract approval. Harold Smith and his legal team will revise, finalize and approve all proposed contractual agreements before they...