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Shrink-Wrap Agreements. TracFone Wireless, Inc., sells phones and wireless service. The phones are sold for less than their cost, and TracFone recoups this loss by selling prepaid airtime for their use on its network. Software in the phones prohibits their use on other networks. The phones are sold subject to the condition that the buyer agrees "not to tamper with or alter the software." This condition is printed on the packaging. Bequator Corp. bought at least 18,616 of the phones, disabled the software so that they could be used on other networks, and resold them. Is Bequator liable for breach of contract? Explain.

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Answer: Yes they are

Explanation:

This is a Shrink-Wrap Agreement which means that in order to use a product, one has to accept the conditions that come with it. The term gets its name from the agreement printed on the shrink-wrap (plastic wrap) of a product. Tearing it off and using that product implies that you agree to the terms printed.

Bequator Corp., in buying the phones agreed with TracFone Wireless Inc's condition that the buyer will "not to tamper with or alter the software". Bequator however went ahead and tampered with the phones they bought such that the phones could now be used on other networks.

This is a clear violation of the condition that TracFone sold it to them under which means that Bequator Corp. is quite liable for breach of contract.

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