Requirement Contracts Law and Legal Definition

Requirement contracts are contracts by which one agrees to buy for sufficient consideration all the merchandise of a particular type that the buyer may require for use in his/her own established business. Such contracts will be in writing and are not void for uncertainty. In these contracts, a party promises to supply all specific goods or services which another party may need during a certain period at an agreed price. The other party expressly or implicitly promises that s/he will obtain the goods or services from the first party exclusively.