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anygoal [31]
3 years ago
8

Omkara, a furniture manufacturer, contracts with foam gnome for $50,000 worth of foam, which omkara will use for making ten sofa

s she has agreed to make for dukeâs furniture. a day before gnome is going to ship the foam to omkara, a flood destroys its entire inventory. gnome tells omkara it cannot send her the foam in time, but tells her that firmfoam can supply her with an identical shipment for $65,000. this increase in price will wipe out twenty percent of omkaraâs profit from her contract with dukeâs. omkara wants to get out of both contracts. can she
Business
1 answer:
snow_tiger [21]3 years ago
8 0
In this situation, it would be a breach of contract if G<span>nome would require </span>Omkara<span> to pay a higher price than the agreed price. They have already contracted the price and they both agreed to it. </span>Omkara<span> can enforce her right to the contract claiming that she will only pay the $50000 because it is what they have agreed upon.</span>
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