Explaining contracts - is abc liable?

Reference no: EM1326434

Due to high gasoline prices, American Bakeries Company (ABC) considered converting its fleet of over 3,000 vehicles to a much less expensive propane fuel system. After negotiations with Empire Gas Corporation (Empire), ABC signed a contract for approximately three thousand converter units, "more or less depending upon requirements of Buyer," as well as agreeing to buy all propane to be used for four years from Empire. Without giving any reasons, however, ABC never ordered any converter units or propane from Empire, having apparently decided not to convert its vehicles. Empire brought suit against ABC for $3,254,963, representing lost profits on 2,242 converter units and the propane that would have been consumed during the contract period.

Is ABC liable? Explain.

Reference no: EM1326434

Questions Cloud

Johari window good framework for leaders : Does the Johari Window seem like a good framework for leaders who want to create better communications among team members?

Elucidate two reasons a single minimum salary : Elucidate two reasons a single minimum salary might distort the labor market for teenage workers more than it would the market for adult workers.

Basic functions of common computer software application : Common software applications and functions for business - What are the basic functions of three common computer software applications for the business world available on the market today

Explain globalization trends : Explain Globalization trends and identify non-North American countries affected by these trends

Explaining contracts - is abc liable? : Empire brought suit against ABC for $3,254,963, representing lost profits on 2,242 converter units and the propane that would have been consumed during the contract period. Is ABC liable? Explain.

Identify the functions of a channel service unit : How are they used in the corporate environment.

Cross cultural psychology disciplines : I need help discussing the application of Cross Cultural Psychology to the following disciplines: 1. Abnormal Psychology 2. Humanistic Psychology

Elucidate three manufacturing companies that experienced : Elucidate three manufacturing companies that experienced large percentage increases in the number of firms between 1997 and 2002.

Describing project management : The project is moving along with the normal set-backs?nothing major, though, until today. In your regular status meeting with one of your project vendors, the account manager, George, closed your door and told you that you have a problem.

User Account

All Pages