Output contract

Contract law

Part of the common law series
Contract formation

* Offer and acceptance
* Posting rule
* Mirror image rule
* Invitation to treat
* Firm offer
* Consideration
* Implication-in-fact
* Collateral contract

Defenses against formation

* Lack of capacity
* Duress
* Undue influence
* Illusory promise
* Statute of frauds
* Non est factum

Contract interpretation

* Parol evidence rule
* Contract of adhesion
* Integration clause
* Contra proferentem

Excuses for non-performance

* Mistake
* Misrepresentation
* Frustration of purpose
* Impossibility
* Impracticability
* Illegality
* Unclean hands
* Unconscionability
* Accord and satisfaction

Rights of third parties

* Privity of contract
* Assignment
* Delegation
* Novation
* Third-party beneficiary

Breach of contract

* Anticipatory repudiation
* Cover
* Exclusion clause
* Efficient breach
* Deviation
* Fundamental breach

Remedies

* Specific performance
* Liquidated damages
* Penal damages
* Rescission

Quasi-contractual obligations

* Promissory estoppel
* Quantum meruit
* Unjust enrichment

Related areas of law

* Conflict of laws
* Commercial law

Other common law areas

* Tort law
* Property law
* Wills, trusts, and estates
* Criminal law
* Evidence

* v
* t
* e

An output contract is an agreement in which a producer agrees to sell his or her entire production to the buyer, who in turn agrees to purchase the entire output. Example: an almond grower enters into an output contract with an almond packer: thus the producer has a "home" for output of nuts, and the packer of nuts is happy to try the particular product. The converse of this situation is a requirements contract, under which a seller agrees to supply the buyer with as much of a good or service as the buyer wants, in exchange for the buyer's agreement not to buy that good or service elsewhere.

Uniform Commercial Code comment section 2-306: A term which measures the quantity by the output of the seller or the requirements of the buyer, means such actual output or requirements that may occur in good faith. Good faith cessation of production terminates any further obligations thereunder and excuses further performance by the party discontinuing production. However, the cessation of production must be in light of bankruptcy or other similar situations. The yield of less profit from a sale than expected does not excuse further performance of an output contract. See Feld vs. Henry S. Levy & Sons, Inc. (New York, 1975)[1][2] or Technical Assistance International, Inc. vs. United States (U.S. Court of Appeals, 1998).[3]

## References

1. ↑ Brief at CaseBriefs.com
2. ↑ Full Case at Legal.com
3. ↑ full case at findlaw.com

0.00

(0 votes)

Original source: https://en.wikipedia.org/wiki/Output contract. Read more

|

Retrieved from "https://handwiki.org/wiki/index.php?title=Finance:Output_contract&oldid=344573"
*[v]: View this template
*[t]: Discuss this template
*[e]: Edit this template