A requirements contract is a contract
A)in restraint of trade.
B)in which the seller provides all of the goods that the buyer needs.
C)in which the buyer purchases all of the goods that the seller produces.
D)in which a party must buy a product it does not want in order to be allowed to buy a product it requires.

Question

Quizplus · Accepted Answer

A requirements contract is a contract in which the seller agrees to supply all of the goods or services that the buyer needs during a specified period, and the buyer agrees to purchase from the seller all of the goods or services that it requires. This type of contract is often used in industries where the demand for goods or services is uncertain or difficult to predict, and provides the buyer with a reliable source of supply and the seller with a guaranteed customer base. It is not in restraint of trade, as it does not prevent other sellers from entering the market or limit competition. Additionally, it does not require a party to buy a product it does not want to be allowed to buy a product it requires.

A Requirements Contract Is a Contract