definition of requirements contract:
the exclusive contract between a buyer and a supplier lasting a specific period of time. Under a requirements contract, the supplier must provide all the designated materials required by the buyer, and the buyer is obligated to purchase exclusively from the supplier.
requirements contract, as it might be used:
The court ruled that there was sufficient evidence of a requirements contract, indicating the defendant's obligation to supply as much oil as the plaintiff required.
requirements contract, in an example:
Ogden works for a large construction firm that builds transportation infrastructure. His company is hired to construct a freeway overpass. The company estimates that the project will require 200,000 cubic yards of concrete. To ensure a supply, the company enters into a requirements contract with a large supplier. The agreement is to last the length of the project.