BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -An output contract is an agreement in which a producer agrees to sell his or her entire production to the buyer, who in turn agrees to purchase the entire output.

Detailed explanation-2: -Primary tabs. An output contract is a type of contract common to agriculture or energy law where a buyer agrees to buy the seller’s entire output of some agreed-upon product or service; also known as an entire-output contract.

Detailed explanation-3: -For example: Company A produces 10, 000 paper clips per year. Company B would like to purchase paper clips from Company A. The parties agree that Company B will purchase all 10, 000 paper clips that Company A produces this year. This is an output contract.

Detailed explanation-4: -Under a requirements contract, the customer is obligated to purchase its entire requirements of goods exclusively from the supplier. A requirements contract differs from an output contract under which the customer is obligated to purchase the supplier’s entire output of the goods.

Detailed explanation-5: -An output contract is the opposite of a requirements contract. In an output agreement, the buyer agrees to buy the full amount that a seller can produce in a certain season or time period.