Output Contract


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Related to Output Contract: requirements contract

Output Contract

In the law of sales, an agreement in which one party assents to sell his or her total production to another party, who agrees to purchase it.

This type of contract does not entail an illusory promise, a purported agreement that actually means nothing because it leaves to one party the choice of performance or nonperformance, even if the quantity of goods that are the subject of the contract is indefinite. It is also known as an entire output contract, and it is subject to the Uniform Commercial Code, a body of law adopted by the states that governs commercial transactions.

Cross-references

Requirements Contract.

output contract

n. an agreement in which a producer agrees to sell its entire production to the buyer, who in turn agrees to purchase the entire output, whatever that is. Example: an almond grower has a "home" for his output, and the packer of nuts is happy to have a sure-fire supply, even though it may have to store away a glut.

References in periodicals archive ?
The producer producesunder output contract C that specifies fixed output price p and contracted quantity [?
6) In the presence of an output contract, however, full property insurance may be purchased even if it is actuarially unfavorable.
Musanada has also introduced output contracts, which are accepted as best-practice technically and economically," says Al Balooshi.
The period of output contracts corresponds to a move to de-collectivise agriculture.
While still allowing for technological change as an unexplained residual, the assumption that share coefficients drawn from the period 1991-1994 are constant and apply to the period of output contracts (1981-1987) can thus be seen as reasonable.
Unless a specific exception applies, the Final PAB Regulations treat a person as a private business user of bond-financed property based on ownership, leases, nonqualified management contracts or incentive pay contracts, certain output contracts (but do not make these rules final), or a catch-all category of certain other actual or beneficial uses based on either "special legal entitlements" to property available for general public use or "special economic benefits" from other property.
The Final PAB Regulations do not provide final rules on when output contracts (e.
When agricultural output contracts, everything else remaining the same, it means income contracts.
US Session Key Developements Banks Rally on JPMorgan Earnings Optimism Consumer Prices Slump for First Time Since 1955 Industrial Output Contracts More Than Expected Stocks Finish Up on Rocky Day Prior to Bank Earnings U.
Despite the minister's insistence, two German government advisers said last week a restructuring of the debt pile, which is only increasing as Greece's output contracts, was now inevitable, and markets hold the same view.
Fitch IBCA will continue to monitor management's progress in funding the acquisition and negotiating output contracts.
He adds, "Encore's long term exclusive output contracts with major Hollywood studios and its programming philosophy geared to serve the broadest audience were the key reasons for CCI to enter this long term agreement with Encore.