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Question:

[Solution]Managing Contract Issues in Business

by | Jul 18, 2022 | Recent Orders

A case of breach of contract that I found interesting was Qualcomm which is a technological manufacturing company suing Foxconn Technology Group and three contract manufacturers of Apple for not paying their due royalties. The breach of contract happened after Apple sued Qualcomm first for overcharging some of their chip pieces and refusing to pay $1 billion in promised rebates. Because of this issue Apple decided to withhold their royalty payments to the other three contract manufacturers which is the money owed to Qualcomm for their invention. This issue affects Qualcomm and the other manufactures as Qualcomm is asking for their money but the manufacturers cannot pay it due to Apple giving instructions not to. Qualcomm is a major supplier of chips to both Apple and Samsung, the strain in their relationship has Qualcomm confident that there was indeed a breach of contract. This issue has not yet been resolved between the manufactures and Apple. Personally I think that Apple and the manufactures should follow the contract that was set even if Qualcomm has prices that were considered overprice. If the company paid the money and also ask Qualcomm the reasons why they have not paid their rebates and the increase in price Im sure they could at least workout some arrangement to not have a breach of contract

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