Assume that Trackers has signed a contract to deliver tracking to Coasters for $2 million in two
Question:
Assume that Trackers has signed a contract to deliver tracking to Coasters for $2 million in two equal installments. After Trackers has delivered the first installment, another business contacts Trackers and explains that, owing to an emergency, it desperately needs tracking to complete a major project. This new business offers Trackers $2 million to supply the same amount of tracking still owed to Coasters—double the price that Trackers would receive from Coasters. At this point, Trackers is tempted to commit what is called an economic breach. This is a breach that occurs when one party calculates that it is more financially rewarding to breach the contract in question than to perform it. Would you advise Trackers to breach its contract with Coasters? What are the dangers in Coasters assuming that it will be able to pay damages for breach of contract with some of the profits it makes from the new customer and still be ahead? What more information do you need to answer this question?
Step by Step Answer:
Canadian Business And The Law
ISBN: 9780176795085
7th Edition
Authors: Philip King Dorothy Duplessis, Shannon O Byrne