A requirements contract is a contract between a supplier or manufacturer and a buyer, in which the supplier agrees to sell all the particular products that the buyer needs, in return for which, the buyer agrees to purchase the goods exclusively from the supplier. It is an agreement to purchase all actual needs of specific property or services during a specified period from a particular supplier. A requirements contract is a contract in which the purchaser agrees to buy all of its needs of a specified material from a particular supplier, and the supplier agrees, in turn, to fill all of the purchaser's needs during the period of the contract.
A requirements contract is distinguished from an output contract, in which the buyer agrees to buy all the supplier produces.
