90.2K
Verified Solution
Link Copied!
Consider the following scenario: Company A contracts with Company B to supply widgets. At
the time of signing the contract, A calculates that it will cost $5000 to make the widgets and B
promises to pay $10 000 for the widgets which it plans to sell in turn for $15 000.
Suddenly an unexpected jump in material prices (an unfortunate contingency) raises the cost
of As widget production run to $20 000. Given this background, show how efficient breach
would work among the contracting parties.
Answer & Explanation
Solved by verified expert
