In today business environment companies are choosing to renegotiate contracts rather than
go to court to have the contracts enforced. A court remedy breach of contract can be
lengthy, costly, and in the end no one wins. Companies such as Span Systems and
Citizen-Schwarz (C-S) should have a clear understanding of contract laws, as well
renegotiation practices designed to remedy breach of contract. Both parties are obligated to
fulfill each part of the agreement, and failure to meet the terms of the contract by law can
be consider a breach of contract. This breach can occur when parties such as Span
Systems, whom fail to perform within the guidelines of the agreement.
When parties such as Span Systems a leader in banking software and its client
Citizen-Schwarz (C-S) enter into a one year legal agreement worth six million this
constituted a valid contract. Span System will produced and provide updated banking
software to Citizen-Schwarz within the one year contract. As with any project delays
issues such as poor performance, project delays, organizational changes, and possible
contract violation have arisen within the project. Such elements have led to dissatisfaction
from both companies which could lead to a breach of contract if certain contract clauses
are not addressed. Span Systems and Citizens-Schwarz must negotiate remedies for breach
of contract in order to complete the current project and resolve any contract disputes.
Both Span System and Citizens-Schwarz believe the other to be in breach of contract, each
company must evaluate the problems associated with the project development paying
attention the project scope, delivery schedule, and technical performance. By developing
an acceptable contract by both parties, the software project results should be should be
successful. Completion of the project will free Span System and Citizen-Schwarz from
contractual obligations.
Span Systems will attempt to resolve its issues with the Citizen-Schwarz by initiating
non-litigation tactics such as mediation or other resolution methods. Mediation is the
process by which a third person, called a mediator, attempts to assist disputing parties in
resolving their differences. (Reed, Shedd, Morehead, & Corley, 2005, p.122) It is in the
best interest of Span Systems to maintain a good business relationship Citizen-Schwarz
because the e-CRM contract is contingent on the successful completion of the
Citizen-Schwarz software project. By implementing non-litigation tactics such as
mediation or other resolution methods, will allow Span Systems to increase its chances to
resolve the contractual issues with Citizen-Schwarz AG and prevent costly lawsuits. The
