Question

Suppose that Dr. Reilly owns a medical clinic and he 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 they need." Decide.
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.

Answer 1

Answer:

D. Both b. and c

Explanation:

The contract between Dr. Reilly and Pharzime can either be output contract or considered to be void, since there are not agreement on quantity of products.

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. This might be the case with Dr. Reilly and Pharzime, or the contract might be considered void.