Requirements contract

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Requirements contract is a contract between a supplier or manufacturer and a purchaser where the seller agrees to provide the purchaser with all the goods that the purchaser needs, and the buyer agrees to purchase the goods exclusively from the supplier. The Uniform Commercial Code § 2–306(1) requires that the purchaser must request the quantities in good faith, and that the quantities cannot be unreasonably disproportionate to any stated estimates or comparable quantities. § 2–306(2) requires that the supplier or manufacturer use their best efforts in providing the buyer with the products. For example, in Schawk, Inc. v. Donruss Trading Cards, Inc., the parties disputed over a requirements contract, which provided that one party provide all the prepress art services that the other party needed to print sports trading cards for five years. 

[Last updated in April of 2021 by the Wex Definitions Team]