Suppose that Dr. Reilly owns a medical clinic and enters into a contract to buy some tablets of Gensol from Pharzime. Since Dr. Reilly does not know how many tablets he will need, that contract states that Pharzime will supply the clinic with "as many tablets as it needs." Which of the following is true about the contract?

A. This is a requirements contract. B. This is an output contract. C. This contract would be void since it does not have a specific quantity term. D. Both b. and c.

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8 January, 12:47

Suppose that Dr. Reilly owns a medical clinic and enters into a contract to buy some tablets of Gensol from Pharzime. Since Dr. Reilly does not know how many tablets he will need, that contract states that Pharzime will supply the clinic with "as many tablets as it needs." Which of the following is true about the contract?

A. This is a requirements contract. B. This is an output contract. C. This contract would be void since it does not have a specific quantity term. D. Both b. and c.

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Answers (1)

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Genevieve Ho · Answer 1

Answer:Option (A)

Explanation:

From the given case we can state that the mentioned contract is a requirement contract. Requirements contract is referred to as or known as a contract under which one individual or party tends to agrees to supply a good, commodity or service as required by other individual or party, and thus in exchange the individual implicitly or expressly promises to obtain the commodity and services.