Business Memo Law 531 - Memo To Paul Forshey From Hector...

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Memo To: Paul Forshey From: Hector Sierra Subject: Contract Creation and Management Contract negotiation is imperative when dealing with business negotiations. Contract negotiations influence relationships in the global marketplace. Citizen-Schwarz AG (C-S) and Span systems are having some difficulties finding common ground with the business contract. Business relations can certainly be jeopardized if some sort of negotiation cannot be drawn. Recently both companies were communicating between project managers when a dispute over quality and schedule of deliverables surfaced. Leon Ther, top negotiator at C-S became irate because Span Systems quality of deliverables has suffered in the past couple of months and has fallen behind schedule. C-S spoke with Span Systems about the inability to afford schedule slips and requested Span to transfer all unfinished codes to C-S and affirmed the rescission of the contract by C-S. Terms of agreement C-S requires the assurance of effective and on time deliveries of the products. If for any reason Span can not meet C-S obligations, they will be penalized and Span Systems will only receives payment for properly functioning completed work. Due to the valid contract between C-S and Span Systems, both companies have to abide by the terms. According to terms of contract law,
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C-S and Span Systems have a bilateral contract, which suggests that both parties agree to perform certain things. In this scenario, C-S offered Span Systems a contract to deliver the $6 million transaction software to market within one year. Span Systems then agreed to deliver the software on time. According to (Chap 13 Pg. 497) “A contract is a promise or set of promises for breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. A contract is formed when two parties with the correct mental intent, under the correct circumstances, within the boundaries of the law, and with some detriment to each of them agree to do certain acts in exchange for the other’s acts. The elements for the formation of a valid contract are offer, acceptance, consideration, capacity of parties to contract and lawful
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Business Memo Law 531 - Memo To Paul Forshey From Hector...

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