Apple contracted with Flextronics, a computer manufacturer, for 1,000 screens fo

Question

Apple contracted with Flextronics, a computer manufacturer, for 1,000 screens for an Ipod. Flextronics manufactured and delivered 500 screens, which were paid for by Apple. At the same time, Apple notified Flextronics that it could not use or dispose of the other 500 screens and directed Flextronics not to manufacture any more under the contract. Nevertheless, Flextronics proceeded to make up the other 500 screens and tendered them to Apple. Apple refused to accept the screens, and Flextronics then sued for the purchase price. Is Flextronics entitled to the purchase price? If not, is Flextronics entitled to any damages? Explain

Explanation / Answer

Explanation:

Apple and Flextronics entered into contract of producing and delivering 1000 screens for an iPod, Thus Flextronics is legally bound to deliver 1000 screens and to deliver them to Apple, failing to which can be legally offense for them. Apple is bound to pay for the screens on delivery of screens failing to do so will make them liable for legal offence.

Flextronics delivered 500 screens and were in process to produce another 500 but then Apple directed them not to produce any more, to which Flextronics has commenced production of screens which will cost Flextronics lots of money. In this case Apple breaches the contract by not accepting remaining 500 screens. That is why Flextronics can sue them and liable to the cost price since apple has directed them not to produce more screen under contract.

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