What thing of value has aviation transferred to institute

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Reference no: EM131378697

Aviation Electronics entered a contract with Sky Train Institute of Montana in which Aviation agreed to supply the institute with 17,000 component parts for the development of the institute's remote control bomber. The bomber had to be operational by December 3; otherwise, the institute would lose a research grant from the Department of Defense.

After delivering 5,000 parts, Aviation told Sky Train that it wanted an additional $4 million beyond the original price agreed upon to deliver the remaining parts. Sky Train attempted to obtain the parts from other firms, none of which could fill the order in the time limit required by the DOD contract specifications.

To make the deadline stipulated in the government contract, Sky Train reluctantly agreed to the new price demanded by Aviation.

What "thing of value," if any, has Aviation transferred to the institute that it did not already owe the institute under the original contract? Explain.

Reference no: EM131378697

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