A restaurant called Habib's agrees to buy all the groceries it needs from Rida Supermarket.Which of the following contracts is created in this case?

Question

Quizplus · Accepted Answer

A requirements contract is created when a buyer agrees to purchase all of its needs in a certain item from one seller. The economic harm of such contracts is that the competitors of the seller are foreclosed from competing for sales to the buyer for the duration of the contract. Thus, the contract made by Habib's to buy all the groceries it needs from Rida Supermarket is an example of a requirements contract.

A Restaurant Called Habib's Agrees to Buy All the Groceries