Business Law

Sterling computer has entered into a partnership with NoBugs a microchip processing computer. The collaboration was developing into a something successful until an incident put a strain in the business relationship. Some month ago Sterling computer has had several of their computers explode shortly after customers install them. Upon an investigation which was conducted by Sterling researchers have discovered evidence of NoBugs’s microchips aggravating a dormant defect in their computers, causing them to explode. The analysis on NoBugs microchips revealed that they were indeed below design specification and that the imperfections were caused by a slight miscalibration of NoBugs’s encoding equipment. Once, the information was presented to NoBugs they course of action correcting the problem by recalibrating the equipment and promptly resumed production of making perfect chips. However, this incident has caused Sterling business to bare the gaunt of the financial burden which is a loss of profits, out-of-pocket associated with compensating customers for the explosions, and injury to its business reputation by total accumulation will exceed somewhere north of $20 million dollars.
The Strategy If Sterling were to opt for ligation against NoBugs for breach of contract Sterling have a case. Both sides has agreed to enter into a pact, on mutually beneficial business terms, where NoBugs are responsible for providing high quality microchips without defects, and Sterling would help NoBugs in achieving high business growth. For a breach of contract you must have two things in your favor. Caused damages in the form of currency compensations necessitating that you have lost money because of the breach. Then, you need material meaning you have to show evidence of how the actions affected the contract. Next, you need to look through the contract and determine if the matter needs to be heard in mediation or arbitration before filing a lawsuit. If so you must attempt