Multiple choice

A pen manufacturer may agree to supply all the pens needed for open house bags. This would be:

  1. Illusory Promise

  2. Termination Clause

  3. Requirements Contract

  4. Output Contract
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A requirements contract is an agreement in which a seller agrees to supply all of the needs or requirements of a buyer for a specific good. Here, the manufacturer agrees to supply all the pens "needed" for the open house bags, which represents the buyer's requirements. This differs from an output contract, where a buyer agrees to purchase everything a seller produces.

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