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Glite Dictionary
output contract

output contract

6.4
An agreement in which a seller must sell all its products to one buyer who has to buy them
  • noun
  • /ˈaʊtpʊt ˈkɒntrækt/
  • Specialized
translation icon : contrato de producción
  • The farmer signed an output contract to sell all his corn to the distributor at a fixed price.

Examples

  • In order for requirements and output contracts, and indeed for other contracts to be valid, the contracts must be mutual.

  • Under the output contract, the factory is required to deliver all its products to the retailer.

  • Companies often enter into an output contract to ensure their goods are sold before production begins.

Synonyms

offtake
vsoutput contract
  • Specialized
9.9

A contract where a buyer agrees to buy a producer's future products

commits to buy the producer's entire production rather than only part

Surface Forms

contract singular
contracts plural

Morphology

output + contract

The compound follows a transparent noun + noun composition: 'output' (production) + 'contract' (agreement) clearly indicates a contract concerning produced goods. While the precise legal detail (selling all production to a specified buyer) is specialized, the basic idea — an agreement about output — is directly inferable by a B1 learner who knows both constituents.

Etymology

Output contract comes from the plain image of a producer agreeing to 'sell all' their output, meaning what they make, to 'one buyer' under a contract. So, it now means a written agreement to 'sell all production' to a specified buyer.