Topic 1: agreement Risk and OpportunitieS

Topic 1: Contract Risk and Opportunities



Topic 1: Contract Risk and Opportunities

Introduction

Gentleman, the major rationale for this memo is to provide some guidance during the contract discussions with Span schemes and Citizen-Schwarz AG. I accept as true as manager of this banking programs project, part of my blame is to suggest both companies considering my assessment of the agreement at hand. In this memorandum, I will explain the lawful dangers and possibilities both businesses face considering the agreement made. Afterward, I will recognise what our associations can do to avoid those dangers, minimize the liabilities, and advantage from the opportunities. Finally, I will evaluate the alternatives presented to resolve the issues identified in order to smooth relations between both corporations; but more important to save the contract by making the necessary amendments to satisfy both of our organizations.

Legal Risks and Opportunities

Any time when two companies enter into a bilateral contract, there are habitually lawful dangers involved from both ends. In this particular case, the main argument between our companies is regarding value and the agenda of deliverables. manifestly, lawful risks arise from the original agreement between Span schemes publicity Citizen-Schwarz. The following contract clauses are identified as breaches of the agreement: Substantial presentation of Contract, interior Escalation method for Disputes, Requirements Change, and connection and Reporting. As with all contract clauses, each representing party will have pros and cons. considerable presentation has been identified because Span Systems is behind agenda of deliverables and its quality is substandard. Under the contract clause for Internal Escalation Procedure for Disputes, Citizen Schwarz did not follow the protocol.

The clause stipulates, “prior to the filing of any formal proceedings with respect to a dispute, the party believing itself to be aggrieved shall call for progressive management involvement in the dispute negotiation by written notice to the other party” (University of Phoenix, 2009). The ambiguity of words in the clause for Requirements Change has both companies at fault for not being specific enough. Change in the project management structure at Citizen Schwarz and evidence of its delay in turnaround times will place CS at fault for the breach Communications and Reporting. Despite all the violations of the contract, opportunities arise from having to manage the legal risks that derived from this unfortunate situation. The important aspect to remember is that each company can look into contract remedies such as arbitration, negotiation, and mediation as a means of reconciliation and attempt to continue to work together in good faith.

Avoiding Risks

In working as a project manager with several international organizations, who have sought out to become business partners, I have seen my share of contracts and the risks they propose on the parties. The first risk that Span Systems and Citizen Schwarz should avoid is the use of ambiguity terms such as 'ordinary requirements change.' “The phrasing of contacts and the use of certain words often being the reason for disagreement, courts have been compelled to devise several rules to aid ...