Based on the fact that the contract was worth $6 million and there was a possibility of obtaining a larger CRM contract from the company after completion of the contract it was in the company’s best interest to resolve the situation by negotiating directly with the client. A lawsuit at this moment would bring unnecessary legal fees and it would eliminate the possibility of retaining the client in the long run. There were four primary points that led to the dispute. The list below shows a summary of the reasons for the standoff.
In round one of the simulation I was given five legal solutions to choose from. The decisions were the basis of an ongoing negotiation between both parties. The five legal solutions available were: a) Breach of contract under substantial performance of contract; b) Breach of contract under internal escalation procedure for disputes; c) breach of contract under requirement change; d) Breach of contract under communication and recording; e) Breach of contract under intellectual property rights. The simulation indicated that I was supposed to pick three alternatives. I choose options b, c, and d. In the scenario one of the claims was that C-S had been asking for too many changes without considering the timeline and budget implications of the change. The constant changes made it impossible for the firm to comply with the contract on a timely manner. I chose the option of breach of contract under internal escalation for procedures because the information in the simulation indicated there were no cons associated with this option. Also C-S had already indicated that rescission of contract violated contractual obligations. Option d was chosen because the change in management structure at C-S had hurt the communication process which caused delays. Due to internal escalation that occurred at C-S I was confident the client would reconsider their stance.
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