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A Farmer Growing Cocoa Beans Enters into a Contract with a Chocolate

question 52

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A farmer growing cocoa beans enters into a contract with a chocolate factory. According to the contract, the chocolate factory will buy a ton of cocoa beans from the farmer at the price of $2,200 per ton next month. A day after the contract is signed the price of cocoa beans falls to $2,000 per ton. If the farmer and the chocolate factory go ahead with the contract:


Definitions:

Human Suffering

The experience of physical, psychological, or emotional pain or distress by humans.

Stakeholders

Parties or individuals who have an interest or investment in a particular business or project and can be affected by its outcomes.

Board of Directors

A group of individuals elected by shareholders to oversee the management and major decisions of a corporation.

Local Communities

Groups of people living in the same geographic area, sharing common social ties, and interacting with each other on a daily basis.

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