Acme Candy,Inc.agrees to buy all the sugar it requires from one sugar refiner.Which type of contract is created in this case?

Question

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A requirements contract is created when a buyer agrees to purchase all of its needs in a certain item from one seller; for example,a candy manufacturer that agrees to buy all the sugar it requires from one sugar refiner.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.