An agreement of a seller to supply a buyer with all of the buyer's requirements for certain goods is known as:
A) an output contract.
B) a requirements contract.
C) a firm offer.
D) promissory estoppel.

Question

Quizplus · Accepted Answer

A requirements contract is an agreement between a seller and a buyer in which the seller agrees to supply all of the buyer's requirements for certain goods. This type of contract is often used in long-term business relationships to ensure a steady supply of goods. An output contract is similar, but it is an agreement for the seller to supply all of its output of certain goods to the buyer. A firm offer is an offer by a merchant to sell goods in which the merchant promises to keep the offer open for a specified period of time. Promissory estoppel is a legal doctrine used to enforce promises that were made without a formal contract.

An Agreement of a Seller to Supply a Buyer with All