In: Operations Management
Buyer A has entered into a contract for the sale of goods with Seller B. The contract provides that Seller B will deliver the goods on May 1, 2010. On February 1, 2010, Seller B informs A that it will not be able to perform the contract. What has occurred and what remedies are available to A in this case?
When the seller breaches the contract , this might have happened due to the inability of seller to provide the goods or some misunderstandings or any other problems from the end of the seller. However a buyer can file a suit against the seller for breach of contract . In this case A can file a suit against B for breaching the contract after everything is fixed and B will have to compensate A as per the reason stated by B.