Contract Question
Submitted by chullan88 on Thu, 06/05/2014 - 19:08
1) After a lot of negotiations, you awarded the contract to a seller for providing serivices on testing a complex application. Midway through the project the seller approaches you stating that the seller is unable to get the required software resources to complete the project. what is the best thing to do?
A. Terminate the contract as the seller has breached the contract.
B. Discuss with seller and find a solution.
C. Document the concerns
D. Remind the seller that they are contractually obliged to deliver.
Forums:
chullan88
Thu, 06/05/2014 - 19:10
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Ans is B
Ans is B
But my query is shouldn't it be A as it is a breach of contract?
admin
Fri, 06/06/2014 - 04:11
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If the seller is unable to
If the seller is unable to get resources, it can probably be due to shortage in market. Even if you terminate the contract, what is the guarantee that next vendor will be able to deliver. S
So before you take any actions you should first discuss with seller and try to find the solution.
Only if the situation gets worse and seller shows attitude problem or lack of commitment then you would remind him about contractual obligations and threaten to sue.
Finally if nothing works you can involve the termination clause of contract for material breach and applicable penalty etc will have to be paid by vendor.
This is how it would happen practically.
sunku65
Sat, 06/07/2014 - 09:46
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You need to consider three
You need to consider three things here:
1. This Project is a Complex application
2. A lot of negotiation before awarding the contract.
3. Main thing the Project is in the MIDWAY.
in addition to @ADMINs views.
Finally, the answer is B