Contract Creation and Management

1199 Words Dec 8th, 2011 5 Pages
Contract Creation and Manage
Law 531

Contract Creation and Management After completion of the Contract Creation and Management simulation the following legal issues were noted. There were problems with this contract from the beginning because the specifics of the contract were ambiguous from the start. The companies involved developed a contractual relationship by evidence of an offer, acceptance of the offer and valid and legal consideration, which in this case is money for services rendered. However, the deliveries were behind schedule, and the quality of the work was not acceptable by C-S, who was now considering rescission of the contract.” Rescission is an act to undo a contract.” (Cheeseman, 2010 pg. 254). C-S is
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The most feasible approach appeared to be substantial performance of contract. The attorney agreed with this approach. However, C-S response was unfavorable in that only 40% of the project had been actually completed, and the quality of deliverables had been deficient. C-S also felt that there had not been any major increase in scope. In addition C-S felt although the change in project management did cause a delay, the problems remained unaddressed. This is how the contract was resolved on the simulation on the student website. Performance: Citizen-Schwartz AG may terminate this agreement, in whole or in part, for any reason upon seven (7) days prior written notice. Span Systems shall be entitled to payment for the percent of Services satisfactorily completed as of the date of termination or cancellation. Citizen-Schwartz AG shall be entitled to receive all work products in progress or completed as of the date of termination or cancellation, subject to clearance of all payments due to Span Systems. The Acceptance Testing period shall be thirty (30) calendar days starting from the day after the Software is installed and Span Systems certifies that Software is ready for Acceptance Testing. Citizen- Schwartz AG will review all pertinent data and shall maintain appropriate daily records to ascertain whether the standard
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