Case Study – Breach of Contract
Does providing products below specified requirements violate the contract? Manufacturer versus the supplier
The issue
Sterling, Inc. had a working relation with NoBugs Corporation. NoBugs was responsible for the provision of high-quality standards of microchips to facilitate the creation of exquisite computers by Sterling, Inc. However, in a particular period NoBugs Corporation, as per the investigations, produces chips that were below the required specifications. The analysis carried out points to the cause of the explosion as the design defects of the machines that were aggravated by the imperfections caused by NoBugs microchips. The explosion leaves Sterling, Inc. in shambles. The misfortunes led to compensation for clients for the …show more content…
If the NoBugs Corporation was a trustworthy and credible supplier, Sterling, Inc. expected that there would be consistency in the quality provision of microchips. Assuming that the microchips were of the prescribed standards as per the contract, there would be no explosions of the computers. In the case of Sterling, Inc., NoBugs Corporation had a delivery that was below the expected quality standards. The plaintiff can show, through investigation results, that there was a link of the explosion of the computers to the imperfections of the defendant’s microchips that were below the expected standards. Sterling, Inc. compensated the buyers of the computers that exploded as damages. According to Kelly (2008), a third party cannot enforce a contract even when made for their benefit. In this case, the computer users cannot sue NoBugs for below par micro-chips. It is with this knowledge that only Sterling, Inc. was involved in their compensation. However, due to their contractual agreements, Sterling, Inc. are justified to sue NoBugs for the breach of