Contract, Legal Risk & opportunities between software company and bank
Company A is a software development company. Company B is a large industrial bank. The bank (company B) has hired the software company (A) to create a software system to run all financial programs in the bank. The software company was given 1 year to complete the job. 8 months into the project the software company is behind their timeline. They should be 60% done but they are only 40% done. The reasons are because the scope of the project continues to change and grow. There is blame on both sides. The bank also claims that there are bugs with the software. The bank considers dropping the contract 2/3 into the project and going with someone else.
- Identify some legal risks and opportunities with contract creation and management of this situation
- Identify what a manager can do to avoid those risks, minimize the liabilities, and benefit from the opportunities.
- Legal risk or opportunities are govern by legal principles, identify those principles and relate the specific measures managers can take to minimize legal risk or realize legal opportunities to these principles