Poweroxi Inc.produces rocket propellant fuel that is used in space shuttles.NASA is an agency that requires rocket propellant fuel to send its rockets to space.NASA enters into a contract with Poweroxi Inc.to purchase all of the propellant fuel it will need this year from Poweroxi.What would this contract be an example of?

Question

Quizplus · Accepted Answer

A requirements contract is a type of contract where the buyer agrees to purchase all the goods or services they need from the seller, and the seller agrees to provide those goods or services. In this scenario, NASA is agreeing to purchase all the propellant fuel it needs from Poweroxi, making it an example of a requirements contract.