Recognizing Contract Risk and Opportunities Memo
Recognizing Contract Risk and Opportunities Memo
Tim Crouch
LAW/531
May 30, 2011
Lisa Sweeney Christensen Abstract
The purpose of this memo is to address legal issues and legal principles found in the Recognizing Contract Risk and Opportunities simulation. Within this simulation, two companies – Span Systems and Citizen-Schwarz (C-S) AG – are engaged in a contract where Span will create banking software for C-S. However, the contract is not clear on all issues and the resulting ambiguities are jeopardizing the current and future relationships between the two companies. This memo will identify the primary legal issues and their related legal principles, suggest actions for both companies to take, and provide guidance to the leadership so that they can make the appropriate decisions. Recognizing Contract Risk and Opportunities Memo
MEMORANDUM
Date: May 30, 2011
To: Kevin Grant and Harold Smith
Cc: Leon Ther
From: Project Manager
Re: Contract Risks and Opportunities
Introduction
Span Systems and Citizen-Schwarz (C-S) are currently engaged in a business arrangement whereby Span will provide C-S customized banking software. As the Project Manager for this project, I feel it is my duty to inform both parties of my assessment of our contract as it stands today. Within this memorandum, I will address the legal issues and opportunities that both companies enjoy by way of this contract. I will then propose actions to avoid risks, minimize liabilities, and what opportunities we could both benefit from. Finally, I will evaluate the proposed alternatives to resolve current disputes and review the amendments necessary to satisfy the needs of both our organizations.
Legal Risks and Opportunities
No business venture is without risks or opportunities. When two entities such as ours engage in a relationship, the risks and opportunities are heightened. As a result, it is common to enter into a contract in order to minimize risks and maximize
Tim Crouch
LAW/531
May 30, 2011
Lisa Sweeney Christensen Abstract
The purpose of this memo is to address legal issues and legal principles found in the Recognizing Contract Risk and Opportunities simulation. Within this simulation, two companies – Span Systems and Citizen-Schwarz (C-S) AG – are engaged in a contract where Span will create banking software for C-S. However, the contract is not clear on all issues and the resulting ambiguities are jeopardizing the current and future relationships between the two companies. This memo will identify the primary legal issues and their related legal principles, suggest actions for both companies to take, and provide guidance to the leadership so that they can make the appropriate decisions. Recognizing Contract Risk and Opportunities Memo
MEMORANDUM
Date: May 30, 2011
To: Kevin Grant and Harold Smith
Cc: Leon Ther
From: Project Manager
Re: Contract Risks and Opportunities
Introduction
Span Systems and Citizen-Schwarz (C-S) are currently engaged in a business arrangement whereby Span will provide C-S customized banking software. As the Project Manager for this project, I feel it is my duty to inform both parties of my assessment of our contract as it stands today. Within this memorandum, I will address the legal issues and opportunities that both companies enjoy by way of this contract. I will then propose actions to avoid risks, minimize liabilities, and what opportunities we could both benefit from. Finally, I will evaluate the proposed alternatives to resolve current disputes and review the amendments necessary to satisfy the needs of both our organizations.
Legal Risks and Opportunities
No business venture is without risks or opportunities. When two entities such as ours engage in a relationship, the risks and opportunities are heightened. As a result, it is common to enter into a contract in order to minimize risks and maximize
References: Cheeseman, H. R. (2010). Business Law. Legal Environment, Online Commerce, Business Ethics, and International Issues (7th ed.). Upper Saddle River, New Jersey: Pearson Education, Inc.. University of Phoenix. ( 2011). Legal environment of business. Retrieved from University of Phoenix, LAW531 - Business Law website. Calamari, J., & Perillo, J. (1998). The Law of Contracts (4th ed.). St. Paul, MN: West Group.