requirements contract

Definition of "requirements contract"
  1. A mutually binding agreement where one party commits to supply all specific goods needed by the other party, who pledges to buy only from them
How to use "requirements contract" in a sentence
  1. Large supermarkets often enter into a requirements contract with farm suppliers for seasonal produce.
  2. Under their requirements contract, the software company provides all necessary upgrades and bug fixes for the business.
  3. The auto manufacturer signed a requirements contract with a tire supplier for their vehicle production.

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