When a seller enters into an output contract with another, the seller
A) Gives up the right to sell the goods of the contract to another.
B) Must produce a minimum amount of goods as indicated in the agreement.
C) Is required to sell the majority of the good to the buyer.
D) Is under no obligation to create any expectations with the buyer.

Question

Quizplus · Accepted Answer

In an output contract, the seller agrees to sell all of the production of a certain product to the buyer, effectively giving up the right to sell the goods to anyone else during the term of the contract.

When a Seller Enters into an Output Contract with Another