Law 531: Recognizing Contract Risk and Opportunities Memo

1053 WordsMar 4, 20115 Pages
Recognizing Contract Risk and Opportunities Memo LAW 531 February 25, 2011 TO: Span Systems Management FROM: DATE: February 14, 2011 RE: Recognizing Contract Risk and Opportunities Memo In the last few months, Span Systems and C-S have been undergoing negotiations to address the issues brought forth by C-S regarding delivery and quality of goods. The relationship with C-S is beneficial for Span Systems to continue the working relationship with C-S. Below are the legal principles, prevention, resolutions, and management responsibilities of each issue affecting Span Systems and C-S: Issue 1: C-S claims that Span’s deliverables are low on quality and behind on schedule. Legal Principle: Tender of Delivery [UCC2-301];…show more content…
This alternative meets The needs of both companies by provided quick feedback and regular updates. Issue 3: Ambiguous worded terms in the contract. Legal Principle: Ambiguous wording in contracts is open to interpretation. The contract Stated ambiguous words such as, “original.” Legal Principle: Breach of contract under “Requirements Change” because the initial assessment of the project has changed requiring more and materials. Prevention: Contracts should use common words and include a glossary for a clear understanding of words and terms. This prevention benefits Span because it ensure that both parties understand the words and terms being used in the contract. Resolutions: Negotiate contract terms between both parties addressing all issues, concerns, and questions. This resolution benefits Span because it encourages both parties to work together to address issues, concerns, and brainstorm on resolutions. Management: Management’s responsibility is to seek legal advice and work with C-S to ensure that both parties are adhering to the contract. Issue 4: C-S rescinds contract after 50% of the contract was completed. Legal Principle: C-S and Span have a signed contract that states that both parties agree that the contract cannot be canceled after 50% of the job is completed. The signed contract is legally binding. The promissory estoppels prevents the withdrawal of a promise by

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