A Captive Supplier Makes Investments in Order to Secure a Portion

question 51

True/False

A captive supplier makes investments in order to secure a portion of the buyer's business,but it is given assurance of sufficient business to recoup the investment through legal contracts.

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Definitions:

Bilateral Contract

A legal agreement in which each of the parties to the contract makes a promise to the other or undertakes a certain obligation.

Unilateral Contract

An agreement where one party makes a promise, but the other side does not reciprocate with a promise but with an action.

Internet Communication

The exchange of information or messages between users through the internet, utilizing various platforms and technologies.

Gratuitous Promise

A promise for which no consideration is given; not legally binding unless put in a deed or supported by some form of consideration.