Breach of ContractA breach of contract should be handled appropriately through the chosen forums such as arbitration and the CRTIC. If an agreement or settlement can not be reached through arbitration then both parties have the option to present the case to the CRTIC. The CRTIC can order either party to pay for damages incurred from the breach of contract based on the contracts stipulations.
Remedies for Breach of ContractTwo situations for breach of contract occurred within this simulation. Both situations could have greatly affected the relationship between CadMex and Candore if they were not handled correctly.
First Gentura was being pressured by the Candorean government to subsidize the cost of the antibiotic Viroblax in order to supply lower income residents the drug and prevent it from affecting more of the population. Because CadMex holds the licensing for the product they have arranged a certain amount of profit that they will receive for each pill produced.
If Gentura sells the product to the government at a lower cost, CadMex will lose money that is protected and guaranteed by the license agreement. This will put Gentura in breach of contract for violating the payment terms of the contract. After considering the circumstances CadMex chose not to sue for breach of contract. CadMex decided to offer a settlement so that both parties would benefit. They agreed to retain marketing rights of another product that Gentura currently held the rights to and recovered their losses from the sales of the other item.
Second after the virus continued to spread among Candoreans, CadMex was unable to keep up with the demand. The Candorean government considered suspending CadmexÃÂs patent in order to allow compulsory licensing to other manufacturers to sell their generic version of the product to Candore. This act would have put Candore in...