Dependent contract
DEPENDENT CONTRACT. One which it is not the duty of the contractor to perform, until some obligation contained in the same agreement has been performed by the other party. Ham. on Part. 17, 29, 30, 109.
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Over the past few years, Compal, the world's second-largest notebook PC maker following Quanta by shipment, has been Acer's most dependent contract supplier, controlling a dominant share of Acer's overall annual notebook PC shipment.
The appeals court's recent opinion is that the farmout is not a production dependent contract and that any proceeds of any judgment or claims made by Remington must be credited to the net profits interest.
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