In: Operations Management
Tune Products, Inc. offered to sell one hundredMP3 players at $50.each, subject to certain specific delivery dates. Unlimited replied with a signed purchase order that reads: "Accept your offer for 100 I-appliances at $50.Must be delivered to our warehouse." Tune did not respond and did not deliver the goods. Unlimited is suing for breach of contract. Tune contends that there is no contract.
Students must choose 1 case from the list of cases provided and write a Brief on behalf of plaintiff or defendant. The overall grade will be based on (1) quality of writing (2) depth of analysis and legal reasoning (3) quality of research (you must cite at least one external source, other than your textbook, that guided your analysis).
In this case Unlimited the plaintiff has sued Tune for a breach of contract whereas Tune the defendant claims that there is no contract at all. Now, if we look at the case we will observe that Tune made a proposal or an offer to sell one hundred MP3 players at $50 each. An offer is defined as a willingness to establish a contract and in this case it was done by Tune and it was accepted by Unlimited and to support their acceptance they have also replied with a signed purchase order. Hence the contract is established and Tune's claim of no contract is not valid or justified in this case. There are various aspects of a contract in this case, date can be an issue but none of the stakeholders have mentioned the date hence this can be considered as a default date that can be decided later.
If it is proved that there is a contract and there is breach of contract then the stakeholder involved in the breach needs to compensate based on the demand and requirement of the other party.