Widget, a manufacturer of widgits, agreed to supply Midgit all the widgits that Midgit needed in his gidgit business. For several years prior to this agreement, Midgit used between 2,500 and 3,000 Widgit widgits per month. In the sixth month of their agreement, Midgit ordered 10,000 widgits. Widgit said it would not honor the order. Is this a valid agreement? Is Widgit liable to Midgit for breach contract? Why or why not?

Question

Ryland Bray

Business

9 March, 16:08

Widget, a manufacturer of widgits, agreed to supply Midgit all the widgits that Midgit needed in his gidgit business. For several years prior to this agreement, Midgit used between 2,500 and 3,000 Widgit widgits per month. In the sixth month of their agreement, Midgit ordered 10,000 widgits. Widgit said it would not honor the order. Is this a valid agreement? Is Widgit liable to Midgit for breach contract? Why or why not?

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Answers (1)

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Lance Bird · Answer 1

It is not a valid agreement as it has to be in writing the no of widgits per month and cost of widgit.

Explanation:

Widgit is liable to Midgit if only if there exists a written agreement regarding quantity and price per month. If there is one, then Widgit is liable to Midgit for breking the agreement.