Contract Creation And Management Laws: Citizen Schwarz Ag

2437 words - 10 pages

IntroductionSpan Systems and Citizen-Schwarz (C-S), a large German Bank, have formed a business contract together to create a software system (for transacting processes in the retail financial services market)the bank can use for its transaction software market. Span Systems is the software developer and C-S is the client requesting the software. During the course of the software development problems or issues occurred that may create a contract dispute that could ruin the business relationship of both Span and C-S. The strained relationship led to claims and counter claims over quality discrepancies, schedule changes and end-user requirements. User and system requirements have increased since the system study stage. The unusual changes have affected C-S's approval and review times. Span's team has gone above and beyond to meet the new schedules. However, quality has suffered as a result of the demanding schedule. Throughout this paper Team X will discuss regulation, legal procedures, needs and risks of both companies. Our team will analyze which contract provisions are necessary and which party will prevail.Span SystemsIdentify needs and risks given the situation.Span Systems is required to have the software by C-S's initially requested deadline. Due to late deliverables and poor quality of coding, Citizen-Schwarz wants to withdraw and transfer the contract from Span Systems, claiming failure of on-time delivery and unacceptable quality for last several months. Span System will be responsibly for having a complete and quality product, no matter how many changes are requested, and assumptions were made that C-S was transferring unfinished code to an Indian software provider. Span System's needs to find a way to complete this project on time, within budget and with quality. C-S can not afford schedule slips due to project performance or change orders that have been made; Span Systems needs to create a performance and progress measurement dashboard that brings up red flags when instances like these occur. Span needs to be able to convince C-S of their performance by evaluating the following contract clauses: breach of contract under substantial performance, internal escalation procedures for disputes, requirements change, communication and reporting, and intellectual property rights. Span Systems needs and risk during the project installation are as follows:1. Span Systems wants to keep the contract and business relationship with C-S in good standing and build the customer satisfaction.2.Span Systems wants the revenue and future business with C-S.3.Span Systems needs more stable user system requirements and reduction in change order requests to accomplish the software development as planned.4.The risk of C-S not wanting to go into alternative dispute resolution (ADR) to solve project issues with contract could hinder project drastically.5.The risk of C-S suing or taking legal action against Span Systems.6.Risk of C-S paying off Span Systems for...

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