An Annual Requirements Contract

question 36

Multiple Choice

An annual requirements contract:

• A)is an inventory check of an organization's supplies at the end of the fiscal year.
• B)is an individual spot contract on the open market.
• C)is a buyer's obligation to fill a buyer's need for a product consistently over a year
• D)is a buyer's responsibility to list out the requirements that a buyer should provide over an year.

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Definitions:

Uncertain Event

An event whose occurrence or outcome is not known or predictable with certainty, often associated with risk assessment.

Condition

A stipulation or requirement in a contract that must be met for the contract to be fully enforceable.

Anticipatory Repudiation

A contractual condition where one party indicates they will not fulfill their contractual duties before the time of performance is due.

Unforeseeable Circumstances

Events that could not have been predicted and therefore are out of the control of the contracting parties, often impacting contracts.