Contract Risk and Opportunities

Span??™s Systems vs. Citizen-Schwartz
This simulation begins in the middle of a big dispute between software-developing company, Span Systems and one of its customers Citizen-Schwartz. The contract was made between two parties, where one represents the company that designs software and another part which requires the software. These are the employees of this conflict, we have Kevin Grant, Director-Projects, Span Systems, is responsible for monitoring the performance of employees. Harold Smith, Span transactional attorney, plays an important role in the implementation of this project. Then Leon, one of the most powerful businessmen in CS.
Span and Citizen have entered into a contract which they agreed to meet which can follow these basic steps to guide them:
1) Contract law in private enterprise
2) Sources of contract law
3) Contractual classifications
4) Contractual enforcement terminology
5) Contractual performance terminology
6) Breach of contract
7) Offer to contract
8) Acceptance of contract
9) Consideration
10) Capacity of parties to contract
11) Lawful purpose
12) Written contracts
13) Interpretation of contracts
14) Assignment of contracts
15) Contracts benefiting a third party
16) Performance of contracts
17) Discharge of contracts
18) Trends in contract law
19) Contractual ethics
The two companies are in a difficult dispute due to poor quality and timely deliveries. Found errors that were found by CS during a test were done. In addition they are concerned that Span did not meet the one-year contract, which was worth $ 6 million. The main concern is to ensure Span a large contract with E-CRM, as it is a little doubtful with the current contract. CS requests all codes and affirms the termination. The case was in litigation for years and finally concluded but with no winner. Although the agreement was 100 million to Majestics, yet it was not enough. The cost of each disputant was a waste of time and productivity. The attorney fees were too expensive. Both sides suffered great loss in business.Legal Issues:
The legal issues presented are performance, internal procedure for dispute escalation, the communication and reporting and change control. The first legal problem identified in the simulation is the performance contract. Once Span Systems and Citizen Schwartz made the contract are required to meet performance. In this contract in addition also is presenting the internal escalation procedure for disputes. This party may request the participation of progressive management in writing to the other party. Communication is essential as it is legal issues. Change Control: any changes will be presented to the client will be evaluated and approved before deployment. It will provide a deadline to ensure that the project follow a schedule. The changes are presented to the client, so that they are made in 3 business days. This will ensure no problems with the project timeline.Future Business OpportunitiesUnder the agreement, either party may terminate this Agreement in its entirety, after more than 50% of the consideration being given by the other. Since CS asked all codes is in breach of contract because over 50% of deliveries have already been delivered. The overall picture shows that E-CRM contract and Span is willing to discuss and make concessions regarding issues of quality of deliveries.L.P.R.A:
LPRA is a public organization contains all the statutory law of Puerto Rico. In my opinion, in that conflict could say that they are breaking the following rules and regulations: Section 1- Title. (31 LPRA sec. 1)
This law is called “Civil Code of Puerto Rico.”
Section 2- Ignorance of the laws. (31 LPRA sec. 2)
Ignorance of the law is no excuse compliance.
Article 11- Contracts, wills and other public instruments. (31 LPRA sec. 11)
The forms and solemnities of contracts, wills and other public documents, are governed by the laws of the country to be granted.
Article 22- Civil law is equal for everyone. (31 LPRA sec. 22)
Civil law is equal for all, without distinction of persons or sex, except where specifically stated otherwise.Contracts are never completely free to interpretation. This simulation provides the most important points to review new and existing contracts. It also gives us the opportunity to develop in a position of a business; discussions related to a contract and finally amend existing contracts in order to prevent future disputes.