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Law

Essay by   •  March 8, 2011  •  520 Words (3 Pages)  •  1,082 Views

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In March 2012 Candore was in the midst of a rare viral epidemic. Viroblax is one of the drugs used in the treatment of this epidemic and Gentura is under severe pressure from the government to subsidize Viroblax. It is for this reason that Gentura is in breach of its contract with Cad Mex Pharma. Cadmex gave Gentura the rights to Viroblax which is a drug used in the treatment of severe viral infections however subsidized production of Viroblax would violate the payment terms of the contract between Gentura and Cadmex.

There are a few remedies that may be available for this breach of contract between Gentura and Cad Mex. One of these remedies would involve Gentura paying CadMex the royalties and other fees they owed them after the viral epidemic was under control and there was no longer a need for subsidized production. This however would mean that gentura would be losing money because they would not be making as much profit off of viroblax but at the same time they would still owe Cadmex just as much money as usual. The second remedy would involve Gentura ignoring the governments request to subsidize Viroblax and continuing to sell it for the normal price. The drawbacks to this remedy could be catastrophic. If Gentura refused to subsidize Viroblax countless numbers of lives in Candore could be lost.

In my opinion the Gentura situation should be handled in one of two ways. My first recommendation would be for Gentura to pay CadMex the agreed upon amount of money once they are stable enough to make such a payment. Gentura could also make the payments over time instead of in one lump sum so that they do not have to worry about going bankrupt. My second recommendation would be for Cadmex to allow the subsidization of Viroblax to take place in order to save countless numbers of lives. If Cadmex were to go with this choice they would have to take a cut in the amount of profit they would make on the sale of Viroblax in Candore. This choice however could

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