Contract Creation and Management
Span Systems is one of the leading and most prestigious banking software companies located in California. Span Systems develops custom e-banking software. The company is valued at $85 million. Kevin Grant is the Director with Harold Smith being the Transaction Attorney. Span Systems was approached by Citizen-Schwarz AG (C-S) to develop a Java-based transaction processing software program. C-S is a German bank located in Stuttgart and has revenues in excess of $20 billion. Leon Ther is the Outsourcing Director for C-S. Span Systems and C-S signed a one year contract in which Span Systems is to develop a Java-based transaction processing software program for $6 million. C-S has stated to Span Systems that there is a bigger e-CRM order hinging on the performance of the Java-based transaction processing software and Span Systems is hopeful to receive this larger project in the future.
Eight months into the Java-based transaction software project, Leon Ther becomes furious with Span Systems' deliverables being behind schedule along with the quality of the deliverables being unacceptable. Leon Ther asked Kevin Grant to transfer all unfinished code to C-S to find another company to complete the job. Leon Ther also asserted a rescission of the signed contract. Span Systems has heard rumors that Leon Ther has approached another software company to complete the work Span Systems was under contract to finish.
At this point, both companies are livid and seek changes to the contract. Leon Ther wants to rescind the contract and find another company to complete the task or start fresh with the code Span Systems has completed thus far. Span Systems wants to work with ...