Requirements Contract
(Long Form)


Summary

This is a long form requirements contract that measures the quantity of goods to be purchased by the requirements of the buyer. This template includes practical guidance, drafting notes, and alternate and optional clauses. In a requirements contract, the buyer promises to purchase from the seller all the goods of a specific type that the buyer requires in the buyer's business. Even though the quantity term remains indefinite, no quantity unreasonably disproportionate to any stated estimate, or in the absence of a stated estimate, to any normal or otherwise comparable prior requirements, may be tendered or demanded. If an output or requirements contract provides for exclusive dealing in the kind of goods concerned, it imposes an obligation on the seller to use best efforts to supply the goods and on the buyer to use best efforts to promote their sale, unless otherwise agreed. This template is used when the parties want a relatively detailed contract that has clauses such as ...