An auction with reserve is a contract in which one party consents to sell to a second party all of the goods that party makes in a given period of time.

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An auction with reserve is a type of auction where the seller sets a minimum price (reserve price) for the item being auctioned. The item will only be sold if the bidding reaches or exceeds the reserve price. The statement in the question describes a requirements contract, not an auction with reserve.

An Auction with Reserve Is a Contract in Which One