Question

Flora, who owns and operates garden fresh organic farms, agrees to sell harvesters grocery a minimum quantity of fresh fruits and vegetables every week for three months. refer to fact pattern 18-a2. if the market price for organic produce exceeds the price in the contract with harvesters, and flora decides not to deliver the order. her contract with the grocery is

Answer 1

Breached. Explanation: A contract is a legally binding agreement between two parties. Once an agreement is signed between two parties, both parties are subject to terms and conditions written in the agreement. As in the above example, Flora agrees to sell harvesters grocery a minimum quantity of fresh fruits and vegetables every week for three months, that means Flora is subject to the agreement that she will sell that no matter what the future market price will be, whether it increases or decreases. As Flora decides not to deliver the agreed order, it is a violation of terms and conditions of the agreement/contract. So the contract is breached.