Buyer agreed with seller that buyer would buy 1500000 gallon

Buyer agreed with seller that buyer would buy 1,500,000 gallons of a particular grade of oil. The agreement stated, “Seller may cancel any unshipped portion of this order if for any reason it should be discontinue making this grade of oil.” Was this a valid agreement? Why or why not?

Solution

This type of aggrement between buyer & seller depends upon the bussiness contract & mutual acceptance on the terms & conditions.

In general its not a right industrial practice or commitment as it may loose market in future but also it depends on buyer that how he would accept this aggrement on his suitability.

Depending on the extent of their interdependence, the relationships are categorized into transactional relationships, collaborative relationships, alliances, and reciprocal relationships. Industrial marketers have to manage relationships with suppliers, customers, and distributors. This requires analyzing supplier relationships and dimensions, acquiring the right customers, creating value, understanding the importance of power, etc.

Sales representatives play a vital role in managing the relationships with customers by performing multiple functions - information exchange, negotiation and adaptation, crisis insurance, social relationship, and ego-enhancement.The different problems in buyer-seller relationships and conflict resolution strategies.

Uncertainty and lack of trust, power difference, deviations from agreements, institutionalized patterns of operation and distance between buyers and sellers lead to conflicts. These conflicts can be resolved through persuasion, compromise, negotiation and bargaining.