Requirements Contract
(Short Form)


Summary

This is a short form requirements contract which can be used when the quantity of goods to be purchased will be 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 is a short form that is suitable when the parties need a simple contract providing little ...