Output Contract Law and Legal Definition
An output contract is an agreement in which a producer agrees to sell its entire production to the buyer, who agrees to purchase the entire output, regardless of the amount. It may be a binding agreement to sell all one can normally produce to another party or a form of exclusive dealings in which one party sells all they produce to another party. The seller of a market or outlet is assured by an output contract for the period of the contract. An output contract is also termed as an entire-output contract.
