Contract Creation and Management
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 considering rescission due to material breach of the contract by Span. On Span’s side of the contract, the original requirements that had been given to them had been changed; this in turn had increased the cost and the time needed to do the job. This makes it possible for Span to make a claim for Breach of Contract under substantial performance of contract against C-S. The formation of a contract is the way the contract is put together by the parties involved. “One way a good plaintiff’s lawyer gets around a contract is to find something in formation that if proven in court, voids the contract.” (Pritchard, 2011 para 2). Contract formation in the simulation was achieved by negotiation. Their points in the contract however, were not clear, which is why the difficulty began. “Rather than discuss their expectations during negotiations, the parties project their own reasonable, but sometimes incompatible, assumptions about the fundamental nature of the deal.” (Fortgang, 2003). Span and C-S never had an actual concrete understanding about what it was that they both wanted and expected from the deal that they were making. The contract should have been administered by a development of an appropriate contract at the beginning. A
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 considering rescission due to material breach of the contract by Span. On Span’s side of the contract, the original requirements that had been given to them had been changed; this in turn had increased the cost and the time needed to do the job. This makes it possible for Span to make a claim for Breach of Contract under substantial performance of contract against C-S. The formation of a contract is the way the contract is put together by the parties involved. “One way a good plaintiff’s lawyer gets around a contract is to find something in formation that if proven in court, voids the contract.” (Pritchard, 2011 para 2). Contract formation in the simulation was achieved by negotiation. Their points in the contract however, were not clear, which is why the difficulty began. “Rather than discuss their expectations during negotiations, the parties project their own reasonable, but sometimes incompatible, assumptions about the fundamental nature of the deal.” (Fortgang, 2003). Span and C-S never had an actual concrete understanding about what it was that they both wanted and expected from the deal that they were making. The contract should have been administered by a development of an appropriate contract at the beginning. A
References: Contract Administration Process http://www.anticlue.net/archives/000850.htm Cheeseman, H.R. (2010). Business law: legal environment, online commerce, business ethics and international issues.(7th ed.). Upper Saddle River, NJ: Pearson Prentice Hall Fortgang, R.S., Lax, D.A., & Sebenius, J.K. (2003). Negotiating the Spirit of the Deal. Harvard Business Review, 81(2), 66-75. Downloaded from EBSCOhost. Harmon, K.J. & Stephan, B.M. (2001). Claims Avoidance Techniques: Best Practices for Contract Administration. AACE International Transactions, 1.1 http://search.ebscohost.com ezproxy.apollolibrary.com Pritchard, E. (2011). Formation of the Contract. Security Dealer & Integrator. Downloaded From GeneralOneFile.