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Glite Dictionary
requirements contract

requirements contract

7.7
An agreement that a buyer must buy all of a product from one supplier
  • noun
  • Specialized
translation icon : contrato de suministro
  • The company signed a requirements contract to buy all of its steel from a single supplier.

Today's case, McMichael V Price, deals with what's called a requirements contract.

Examples

  • Under the requirements contract, the manufacturer is obligated to supply whatever quantity the client demands.

  • A requirements contract ensures that the vendor will meet all the buyer's needs for that product.

  • The company signed a requirements contract with the supplier.

  • Can we establish a requirements contract for next year?

  • The company signed a requirements contract to purchase all of its paper supplies from one vendor.

  • To streamline operations, the firm agreed to a requirements contract for all its packaging materials with a single provider.

  • A requirements contract guarantees that a customer will obtain their necessary quantity of goods from the chosen supplier.

Synonyms

purchase agreement
vsrequirements contract
  • Formal
2 3.6

A written contract that explains the details and rules for buying a house or other goods

means continuous exclusive buying of all needs from one supplier
purchase contract
vsrequirements contract
  • Formal
1 3.3

A legal agreement between a buyer and a seller that explains the terms of a sale

focuses on exclusive ongoing buying of all a buyer's needs

How Binding

requirements contract
  • Specialized
7.7
offtake
  • Specialized
9.9
letter of intent
  • Formal
8 5.1
memorandum
  • Formal
48 5.4

Surface Forms

requirements contract singular
requirements contracts plural

Morphology

requirement + contract

The meaning is largely compositional: a B1 learner who knows 'requirement' and 'contract' can infer it is a contract concerning requirements. However, the specific procurement sense—that the buyer agrees to purchase all of its needs from one supplier—is a specialized legal/business interpretation that is not fully predictable from the constituents alone, so it is only partially transparent.

Etymology

Requirements contract comes from the simple idea that a buyer promises to buy all their requirements ('needs') from one seller under a single contract. Imagine a regular shopper who always goes to the same shop for everything they need; that image shows why the phrase means a deal where the seller must provide all the buyer's 'needs'.