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

Question

Quizplus · Accepted Answer

An output contract is an agreement in which the seller agrees to sell all of its production to a single buyer. This type of contract ensures the buyer a steady supply and guarantees the seller a consistent market for its product.

An Agreement Between Two Parties That Provides That the Seller