The Abbot Corporation contracts with the Baker Corporation to sell to Baker its entire production.After signing the agreement,Abbot can increase its production from one shift to two shifts and Baker will have to buy all of the doubled production.

Question

Quizplus · Accepted Answer

The original contract between Abbot Corporation and Baker Corporation likely specifies the quantity of goods to be purchased. Any increase in production by Abbot would require a modification of the contract that both parties must agree to; Baker is not automatically obligated to buy the increased production without such an agreement.

The Abbot Corporation Contracts with the Baker Corporation to Sell