Thus, "Preserving the relationship with a business partner may be worth far more in the long run that the potential cost of trying to prove that your position on a contract clause is legally sustainable today," (University of Phoenix). This strategy can then be implemented in order to keep Scan and Citizen Schwartz both out of costly financial legal obligations.
Thus, a manager could attempt to work within the limitations of the contract to avoid even having to go to litigation within the constraints of contract disputes. With negotiation, rather than litigation, the manager can potentially succeed in minimizing liabilities and therefore financially benefit from the maintaining of the contract itself. The manager can then "Maintain the contract in being and accept its validity, but object to and seek to negotiate further within the contractual framework, the actions, proposals, or interpretations of the other," (Marsh 98). Now, this is not a viable measure in all cases. The particular elements of the Span System case with CS are determinate on the specific points of dispute. Thus, true negotiating can become an effective measure, by implementing more detailed improvements of the situation defined by the contract (Marsh 16). CS says Span Systems is not performing to expectations outlined within the contract, with deadlines and minimum quality requirements. Yet requirements have grown since inception stage, which has made it difficult for Span to meet deadlines -- but they have gone out of their way to accommodate as best they can. Span Systems producing late and poor quality work, bank can't deal with it "because of its deadline for the release of the transaction software in the market," (University pf Phoenix). Therefore, to remedy this conflict of interest, Span can over services more intimate with CS project managers and project head...
Yet a change in the managerial structure of CS has made this process delayed in previous execution of the old methods of the contract. Thus, instead of Span having to prove evidence of a delay on CS part, managers could effectively work to securing the revenue coming from the contract. With the contract-intellectual property belonging to Span, it is only fair that Span is fully compensated for the transmission of its intellectual labor. In order to address the concerns of CS, the progression if the project should be completely open to their review. Thus the project could then be uploaded daily to show project progression in real time. Thus a Project manager at CS can oversee project progression and potential remedies. By inviting the presence of a CS project manager within the process was used to help ease CS' concern regarding project performance and timelines.
Thus, in this particular case it was more mutually beneficial for both parties to commence in negotiations to keep the validity of the contract itself. With both parties wanting to avoid the lengthy and expensive process of litigation, it is best avoided. Additionally the contract itself in its initial inception provided positive attributes to both parties. Thus, the negotiation and comprises reached were the best possible situation given the specific context. If a potential possibility, contracts should be negotiated as thoroughly as possible in order to prevent the costly ramifications of a going to litigation.
References
University of Phoenix. "Legal Environment of Business." Simulation.
Jennings, Marianne Moody. (2006). Business: Its Legal, Ethical, and Global Environment. Thompson Learning Co.
Marsh, P.D.V. (2001). Contract Negotiation Handbook. 3rd ed. Gower Publishing Company.
