Question

Poweroxi Inc. produces rocket propellant fuel that is used in space shuttles. NASA is an agency that requires rocket propellant fuel to send its rockets to space. NASA enters into a contract with Poweroxi Inc. to purchase all of the propellant fuel it will need that year from Poweroxi. What would this contract be an example of?

Answer 1

Answer:

requirements contract

Explanation:

A requirements contract is a contract between a supplier and a buyer for the provision of a specific product or service where the supplier agrees to provide all the quantity of goods that the buyer might require, and the buyer agrees to only purchase that specific good from that supplier. It is like engaging in a relationship with your vendor, where you can only purchase the good from him and he must provide all the goods that you may need.