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 that year from Poweroxi. What would this contract be an example of?

Question

Quizplus · Accepted Answer

A requirements contract is a contract in which one party agrees to supply all of the goods or services that another party needs during a specified period of time. In this case, Poweroxi Inc. has agreed to supply all of the propellant fuel that NASA needs, making this a requirements contract.