One firm (the contractee) may contract with another firm (the contractor) to provide a product or component
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One firm (the contractee) may contract with another firm (the contractor) to provide a product or component that is unique to the contractee. As it is unique, it cannot be sold by the contractor to third parties. Suppose the contractee subsequently refuses to accept the product on the basis that it does not meet the quality standards set out in the contract. Assuming the quality standards have not been violated, why might a contractee do this, and what recourse would be available to the contractor?
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The contractee might refuse to accept a perfectly good product to negotiate a lower price for it ...View the full answer
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