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.
What is an output contract?
Output contracts are a special type of contract that concern the sale and purchase of goods. Specifically, in an output contract, the buyer agrees to purchase all of a supplier’s output. Generally speaking, the buyer will buy all of an item that the seller can produce. For example: Company A produces 10,000 paper clips per year.
What type of law governs output contracts?
Since output contracts regard the sale of goods, these types of contracts are governed by the Uniform Commercial Code (also known as the U.C.C.). The U.C.C. is a body of laws that specifically set forth rules for the sale of goods (as opposed to services).
Are output contracts enforceable under the UCC?
Both output and requirement contracts are still enforceable even though they lack a precise term concerning quantity. Under the UCC, sale of goods contracts need to have at least an essential term of quantity, yet this requirement may be overcome by using output or requirement contracts.
Can a contract of sale of goods have a specific quantity?
However, under the U.C.C., sale of goods contracts can get around naming a specific set quantity if the contract is an output contract or a requirement contract. The term indicating the quantity as the “total output” or “total requirement” is sufficient under the U.C.C. to make the contract enforceable. Find My Lawyer Now!
What is an output contract example?
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.
What is the output of the parties contract?
An output contract is an agreement where one party agrees to purchase the entire production that the other party supplies. Thus, the buyer will buy all the 'output' the seller makes. Frequently, output contracts are used when a buyer seeks to be an exclusive supplier of a product.
Is an output contract legally enforceable?
Today, requirement and output contracts are enforceable because the parties to the contracts do, in fact, limit their options. If the buyer in a requirement contract wants to buy any of the product in the contract, he must buy it from the seller.
What is an output deal?
Output Deals In an “output deal,” a studio or mini-major agrees to co-finance certain films produced by an independent producer. In exchange, the producer grants to the studio the exclusive rights to distribute the producer's films, in certain media or territories for a specified term.
What is the difference between outputs and requirements contracts?
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.
What is input contract?
Related to Contract input Contract Work means everything required to be furnished and done by the Contractor by any one or more of the parts of the Contract referred to in Article 1, except Extra Work as hereinafter defined.
What contracts are voidable?
A contract may be rendered voidable if:Any party was under duress, undue influence, or was being intimidated, coerced, or threatened when entering into the agreement;Any party was mentally incompetent (i.e., mentally ill, below the age of majority, etc.)More items...•
What is promissory estoppel?
Within contract law, promissory estoppel refers to the doctrine that a party may recover on the basis of a promise made when the party's reliance on that promise was reasonable, and the party attempting to recover detrimentally relied on the promise.
What is supply contract?
An agreement by which a seller promises to supply all of the specified goods or services that a buyer needs over a certain time and at a fixed price, and the buyer agrees to purchase such goods or services exclusively from the seller during that time.
How does a first look deal work?
A first-look deal is any contract containing a clause granting, usually for a fee or other consideration that covers a specified period of time, a pre-emption right, right of first refusal, or right of first offer (also called a right of first negotiation) to another party, who then is given the first opportunity to ...
Does Netflix have contracts with actors?
“They are not employment agreements, they do not require the individuals to work exclusively for Netflix, they involve 'above-the-line' talent (actors) (who are treated differently than standard employees under the law), and they involve entities that are not parties to this case,” states a Netflix brief filed July 18 ...
Who did Netflix buy?
Netflix Inc. NFLX 1.15%▲ said it is acquiring the special-effects company Scanline VFX, a Canada-based firm that has worked on several shows for the streamer, including “Stranger Things” and “Blood Red Sky.”
What is an output contract?
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.
Is a seller's forbearance of the freedom to sell to other buyers besides the contracting
A seller’s forbearance of the freedom to sell to other buyers besides the contracting party is valid consideration for an output contract. Output contracts may contain a best efforts clause in the language of the instrument to specifically require both parties to expend “best efforts” to fulfill the contract.
What is an entire output contract?
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.
What is a law of sales?
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, ...
Why is output contract important?
The output contract helps the seller by ensuring that an entire amount of product is purchased, and there is no excess left over. On the other hand, the output contract helps the buyer because the buyer will have plenty of product available. Moreover, the buyer can benefit from being the exclusive seller of a certain product.
What is the output contract in the book?
Barbara then agrees to buy all the pies Abe makes. This type of agreement is called an output contract. An output contract is an agreement where one party agrees to purchase ...
When a buyer signs an output contract with a supplier, does the buyer include a provision in the contract?
Frequently, when a buyer signs an output contract with the supplier, the buyer also includes a provision in the contract that the buyer can advertise as the exclusive, or sole, supplier of the product.
What is the contract between Mary and Jim?
Mary and Jim enter into an output contract whereby Mary will provide Jim with all of her bottle cap paintings. Because of the contract signed, Jim can be assured that an art gallery competitor will not sell Mary's work, and he will be the exclusive art dealer of her paintings. Another example could relate to the production of a line of sneakers.
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Output Contract Law and Legal Definition
An output contract is an agreement in which a producer agrees to sell its entire production to the buyer, who agrees to purchase the entire output, regardless of the amount. It may be a binding agreement to sell all one can normally produce to another party or a form of exclusive dealings in which one party sells all they produce to another party.
Examples of Output Contract in a sentence
An applicant for a license as a producer of insurance or a licensee who desires to use a name other than his or her true name as shown on the license shall submit a request for approval of the name and file with the Commissioner a certified copy of the certificate or any renewal certificate filed pursuant to chapter 602 of NRS.
Related to Output Contract
Procurement Contract or “Contract” means any written agreement of the Authority for the acquisition of goods or services of any kind in the actual or estimated amount of $15,000, or more.