The sale of goods is the transfer of ownership to tangible personal property in

Question

The sale of goods is the transfer of ownership to tangible personal property in exchange for money, other goods, or the performance of services. The law of sales of goods is codified in Article 2 of the Uniform Commercial Code, which was designed to recognize the commercial realities faced by merchants and shrug off some older common law provisions.

Suppose that Apple, Inc. is seeking to build on its success as the world's leading market of smartphones, and decides to introduce a new product, uPhoneX, which will boast a flexible screen allowing users to twist and bend the device for different functions. Apple contracts with Oranges, Corp., to build the new screens for the uPhoneX. The two parties have never done business before, but because Apple wants to introduce the new product by Christmas, there is little time for negotiations. As a result, the parties neglect to include a fixed price term, quantity term, delivery terms, or time for performance, but Orange Corp. does agree to sell its entire output of the flexible screens to Apple. Both parties perform on the contract, but disputes soon arise.

Suppose that a dispute arises between Apple, Inc. and Orange Corp., and Orange Corp. argues that the contract should be null and void because it was not definite enough to be enforced. The two parties cannot agree, and Apple sues Orange. What would the likely outcome of such a lawsuit be?

Explanation / Answer

a valid cotract should fulfill the characteristics like: there must be something specific to exchange, the date of delivery and time of delilvery must be specific, the issues will be in writen form, mutual consent of the parties, intention to create leagal obligations, and lawful consideration. in these, the only fuliflled characteristic is mutual consent, but the remaining all are not fulfilled.

yes, definitely there are chances to raise problems and issues like delivery of the product on a specific day or date. Apple may ask for delivery, Orange may says that it takes some more time for delivery. but here the issue is that if Orrange only strict to deliver its output to Apple, there wont be much legal problems. hence if orange delivers the same to some one before apple, due to different reasons, Orange may sue by Apple.

if Apple sued Orrange, the outcome may be, the given contract has not fulfilled the essentials of valid contract and it is not said to be a contract. so, it will be cancelled and there is no relation existed between Orange and Apple.

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