An agreement between two parties that provides that the buyer will buy all of a particular product from a particular seller is called a(n)
A) illusory promise.
B) requirements contract.
C) output contract.
D) fulfillment contract.

Question

Quizplus · Accepted Answer

A requirements contract is an agreement between two parties where the buyer agrees to purchase all of its required goods from the seller, and the seller agrees to provide those goods. It is different from an output contract, where the seller agrees to sell all of its production to the buyer. An illusory promise is a promise that is not binding, and a fulfillment contract is not a commonly used legal term.

An Agreement Between Two Parties That Provides That the Buyer