Recognizing Contract Risk and Opportunities

Running head : Recognizing Contract Risk and Opportunities

Introduction

Entering into a contact with another party entails many risks primarily to do with specific performance . Internal and external events occur that hamper a firm 's performance outcomes and prompt the client to terminate the contract . In a bid to save the contract and ensure satisfactory results , both parties can opt to renegotiate the contract to incorporate their individual concerns ( HYPERLINK "http /www .amazon .com /s /ref ntt_athr_dp_sr_1 ?_encoding UTF8 sort releva ncerank search-alias books field-author Roy 20Lewicki " Lewicki , 2010 This process is

less expensive than a court case in terms of cost and time

Legal Risks and Opportunities

The legal risks facing Span Systems include breach of contract and getting sued for damages by the client . With regard to a claim against Citizen- Schwarz AG (C-S ) for breach of contract under the substantial performance clause , the client can counter claim that the firm breached the contract since the deliverables had a count of five defects per deliverable against the industry standard of nil defects . Arguing that the firm has completed a substantial part of the contract because it has spent over eight months on the project is not a strong defense since only 40 of the deliverables have been received by the client

Pursuing a claim against the client for breach of contract under the intellectual property rights clause may result in the client terminating the contact and paying all dues owed to the firm . The firm will get its money...