Legal Question in Business Law in Massachusetts
you decide to open a novelty T-shirt business. You will buy plain white T-shirts from a wholesaler and then arrange them to be printed with funny pictures and quotes. you will sell them to the public from a small booth you rent in a popular shopping mall. You single biggest expense will be the wholesale cost of the T-shirts. How many will u need?You think that sales will soar, and you will need hundreds each week. But what if business lags? You do not want to overstock. Should you enter into a requirements contract or an output contract?
1 Answer from Attorneys
Under the Uniform Commercial Code, a requirements contract is an agreement where a seller agrees to supply to a buyer all of the goods required by the buyer. An output contract is an agreement where a buyer agrees to purchase the entire production of the seller during a specified period.;) Which contract you should enter into is obviously very fact specific.;)
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