Companies entering into contract - Case Study Example

Right before signing the contract, there was no proper consultation by the client for proper requirements of the project; this was the first cause of the failure. Also contributing to the failure were the poor mechanisms to track the progress of the project by both parties. Furthermore, there was no clause to cater for arising issues and amendment of the contract. This resulted in lack of proper measures to solve many issues that were arising, leading to eventual failure of the project. Before signing contracts, there should be thorough consultations between concerned parties to avoid making errors that may result in losses to the companies involved.

All employees should know the laws guiding professional ethical and ensure that they honor them for their own benefit, as well as that of the company as a whole. Keywords: Contract, Guilt, Agreement, Sign, Project, Measures, Consultation, Client, Developer Legal Directions that the Involved Parties should have Adopted The failures that have been associated with this contract provide enough evidence that the agreement between the software developer and the client company was incomplete. The various evidences of inappropriate conduct by either party symbolize the lapse in honoring the contract.

There were also a lot of gaps left during the initial formulation of the contract, which encouraged the misconduct. It is important to define users’ requirements during the signing of contract. Right from the onset, the client should have involved the IT department in the process of issuing out the contract, since the product that was to be developed falls under their area of specialization; therefore they understand the requirements better. For example, the IT department could have challenged the vendors on various issues relating to the software that was to be developed, and were best suited to probe the developers on all matters relating to the operation of the software.

Another failure caused by the client is the failure to involve operational performance in the contract; this should have been the main aim of the software. This is because the contract was too open. Each party failed to know the real role of the software. In particular, any payment should be based on the performance of the item, and the various stages of payment should go hand in hand with functionality of the project. To handle this well, the contract should involve a clause to demand the vendor to provide the software design, so it could act as a guideline during each phase of the software development.

Action taken towards the Two External Contractors Following the unlawful conduct of the employees whose employment was contract based, the company should have taken stern disciplinary action, because their conduct led to loss of confidence on the company by the client. This happened soon after the two contracted employees met with the client. Though it may not be clear what they discussed, actions speak louder than words. The client company pulled out of the contract and as a result, Dag Brucken (DB) incurred a lot of losses, including the loss of time and finances invested in the project.

The greatest offence that these two employees are held liable for is revealing a company’s secret, whose result was loses to the company. Legal action that could be taken against them includes being taken to a court of law, so that they would face prosecution in reference to employee’s code of conduct and mode of conduct; their conduct was in contrast to the company’s policies. Ethical actions comprise the termination of their employment, and subsequent charges made upon them to repay the losses incurred by the company, due to their gross misconduct.

DB Company