On January 1, 2020. Blossom Ltd, entered into a purchase commitment contract to buy 10,600 oranges from a local company at a price of $0.60 per orange any time during the next year. The contract provides blossom with the option either to take delivery of the orange at any time over the next year, or the Seattle the contract on a need base is for the difference between the agree upon a price of $0.60 per oranges and the market price berorens for any orange that have not been delivered. As at January 31, 2022. Blosson LTD did not take delivery of any orange and the market price for and orange was $0.59.
