When a seller agrees to supply all of the goods needed by a buyer, it is called an output contract.

Name: When a seller agrees to supply all of the goods needed by a buyer, it is called an output contract.
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An agreement where a seller agrees to supply all of the goods needed by a buyer is called a requirements contract, not an output contract. An output contract is when a buyer agrees to purchase all of a seller's production.

When a Seller Agrees to Supply All of the Goods