Oceans inc. , a seafood distributor, agrees to buy from paul, a commercial fisherman, any "overstock" of fish that paul catches in excess of his legal limit. This agreement is most likely?

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01-08-2022
Business

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Oceans inc. , a seafood distributor, agrees to buy from paul, a commercial fisherman, any "overstock" of fish that paul catches in excess of his legal limit. This agreement is most likely?

Sagot :

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okpalawalter8 okpalawalter8 · Answer 1 · 2022-08-09T10:40:11-04:00

Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely void. Option C. This is further explained below.

What is overstock?

Generally, Oceans Inc., a distributor of seafood, has reached an agreement with Paul, a commercial fisherman, to purchase any "overstock" of fish that Paul captures in excess of the legal limit for his vessel.

This results in an increase in financial expenses since the investment is left in the storage facility rather than being used to generate cash flow or profits. Drives up the cost of logistics due to the fact that warehouse upkeep sometimes results in unused space and additional labor charges.

In conclusion, Overstocking, often known as "surplus stock," occurs when retailers buy more of a product than they actually move out of their shops. If a retailer overorders goods, they will end up with an excessive amount of stock. This surplus merchandise will either be left on shop shelves or in the warehouse, which may be detrimental to the company's profitability.

Sagot :

What is overstock?

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