Starbucks Coffee contracts with Juan Valdez coffee farms to purchase "all the coffee beans Starbucks needs for the next twelve months." The parties have a(n)________ contract.

Question

Quizplus · Accepted Answer

A requirements contract is a type of contract in which the buyer agrees to purchase all of the goods or services it needs from the seller, and the seller agrees to provide those goods or services. In this case, Starbucks has agreed to purchase all the coffee beans it needs from Juan Valdez coffee farms, making it a requirements contract.

Starbucks Coffee Contracts with Juan Valdez Coffee Farms to Purchase