Responding to Classmate

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Please respond to classmate discussion

Respond 1:

A contract is an agreement between two parties creating a legal obligation for both of them to perform specific acts. Each party is legally bound to perform the specified duties such as rendering a payment or delivering goods. In order for a contract to be enforceable, each party must exchange something of value which is called consideration. A contract may be used for various transactions, including the sale of land or goods, or the provision of services. They may be either oral or written, through courts prefer that agreements be put in writing.

If you don’t read and understand the contract and all the details within the contract, you can be at risk of not being paid for goods or services and you might be liable for things you did not agree to.

Respond 2:

A case of breach of contract that I found interesting was Qualcomm which is a technological manufacturing company suing Foxconn Technology Group and three contract manufacturers of Apple for not paying their due royalties. The breach of contract happened after Apple sued Qualcomm first for overcharging some of their chip pieces and refusing to pay $1 billion in promised rebates. Because of this issue Apple decided to withhold their royalty payments to the other three contract manufacturers which is the money owed to Qualcomm for their invention. This issue affects Qualcomm and the other manufactures as Qualcomm is asking for their money but the manufacturers cannot pay it due to Apple giving instructions not to. Qualcomm is a major supplier of chips to both Apple and Samsung, the strain in their relationship has Qualcomm confident that there was indeed a breach of contract. This issue has not yet been resolved between the manufactures and Apple. Personally I think that Apple and the manufactures should follow the contract that was set even if Qualcomm has prices that were considered overprice. If the company paid the money and also ask Qualcomm the reasons why they have not paid their rebates and the increase in price Im sure they could at least workout some arrangement to not have a breach of contract

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