ÃÂA contract is a promise or a set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a dutyÃÂ (Cheeseman, 2004). A violation of a valid contract is called a breach of contract. In this case Gentura would be in breach of contract with CadMex Pharma because Gentura has decided to subsidize the production of ViroBlax, which would violate the payment terms of the contract between Gentura and CadMex.
Gentura can go to court, but instead chose to get shared marketing rights of another drug manufactured by Gentura. By using arbitration to settle the dispute of the breach of contract saved time and money by both parties and helped in reaching a decision quicker than having to go to court to reach a decision that may take months and cause both parties money and a decision that may not be favorable for any of the parties involved.
Ethnically and morally CadMex made the right decision by not taking legal actions against Gentura because after all the decision by Gentura to breach the contract was to help individuals in their country of an epidemic out breach which Gentura felt tit was their social responsibility to help their people. ÃÂBusinesses have a role to play in improving the lives of all their customers, employees, and shareholders by sharing with them the wealth they have createdÃÂ (Cheeseman, 2004).
RemediesTwo remedies that might be available for such a breach they are: ÃÂconsequential damages which are only awarded when the consequences of an action are known beforehand which in this case Gentura knew that they had breach the contract, but decided to do so in an effort to help the epidemic outbreak. Liquidated damages when the amount of damages are already...