Seasonal Selections,Inc.enters into a contract with Arthur's Tree Farm to purchase all of the balsam fir tree boughs that it will need to make Christmas wreaths for the Christmas season.This contract is:

Question

Quizplus · Accepted Answer

This contract is a requirements contract, where Seasonal Selections, Inc. agrees to buy all the balsam fir tree boughs it will need from Arthur's Tree Farm. It is not an illusory contract because the quantity is specified, and it is not based on a promise that lacks consideration as both parties have agreed to the terms. It is not a void contract based on illegal consideration. It is not an outputs contract as it is based on the buyer's requirements rather than the seller's outputs.