Recognizing Contract Risk and Opportunities

872 WordsOct 6, 20094 Pages
Recognizing Contract Risk and Opportunities For the purpose of this discussion, the following definitions will be defined by The People’s Law Dictionary (Hill, 2008): • Contract: an agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit known as consideration. • Breach of contract: failing to perform any term of a contract, written or oral, without a legitimate legal excuse. This may include not completing a job, not paying in full or on time, failure to deliver all the goods, substituting inferior or significantly different goods, not providing a bond when required, being late without excuse, or any act which shows the party will not complete…show more content…
Specific performance was stated in the contract along with standards. Breach of contract could have been the result. This risk can be avoided by completing the contracts full responsibilities. Opportunities arise when you successfully complete the contract and both parties are happy. During the simulation when C-S threatened to rescind the contract, my best answer would have been to respond with Breach of Contract for the internal escalation procedure for disputes mainly because all the other problems could have been dealt with if the parties were to follow the agreed upon dispute proceedings. The real problem lies in communication between Span and C-S. Breach of Contract under intellectual property rights was too aggressive to maintain the client relationship and would definitely cost the company any future contracts with C-S. Breach of Contract under substantial performance of contract has no merit because Span itself did not comply with the specific performance. Breach of Contract under the issue of change was too much of a gamble. Span also did not have evidence that the new management team’s inability to keep up with the review schedule had a direct effect on the late delivery or low quality of goods. This could potentially backfire. The second part of the simulation required proactive responses to deal with the issues. I elected to beef up Span’s operation teams to meet C-S’s deadlines without sacrificing quality. I also elected
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