Question

Matrix Corporation, manufacturers of computers, agrees in advance to purchase from Chipmaster, Inc., all the computer chips that Matrix needs for the next year at current average market prices. Matrix later does not purchase any computer chips that year. Can Chipmaster enforce the agreement made with it?

Answer 1

Answer and Explanation: From the following given case or scenario, we can state that the Chipmaster cannot enforce the agreement because the agreement or the deal in this particular case is considered to be illusory i.e. deceptive. Here , in this particular case the Matrix corporation has agreed to purchase most of the computer chips from Chipmaster but it doe not do the same , since it is not bounded by a contract or an agreement.