Definitions for output contract
This page provides all possible meanings and translations of the word output contract
a contract in which you promise to deliver your entire output to the other party who promises to accept it
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. Example: an almond grower enters into an output contract with an almond packer: thus the producer has a "home" for output of nuts, and the packer of nuts is happy to try the particular product. The converse of this situation is a requirements contract, under which a seller agrees to supply the buyer with as much of a good or service as the buyer wants, in exchange for the buyer's agreement not to buy that good or service elsewhere. Uniform Commercial Code comment section 2-306: A term which measures the quantity by the output of the seller or the requirements of the buyer, means such actual output or requirements that may occur in good faith. Good faith cessation of production terminates any further obligations thereunder and excuses further performance by the party discontinuing production. However, the cessation of production must be in light of bankruptcy or other similar situations. The yield of less profit from a sale than expected does not excuse further performance of an output contract. See Feld vs. Henry S. Levy & Sons, Inc. or Technical Assistance International, Inc. vs. United States.
Find a translation for the output contract definition in other languages:
Select another language:
Discuss these output contract definitions with the community:
Word of the Day
Would you like us to send you a FREE new word definition delivered to your inbox daily?
Use the citation below to add this definition to your bibliography:
"output contract." Definitions.net. STANDS4 LLC, 2015. Web. 28 Mar. 2015. <http://www.definitions.net/definition/output contract>.