Question

Cat's Coaster Company uses cork in all of the protective drink coasters that it manufactures. If Cat's enters into an agreement with a cork exporter from Portugal to purchase all of the cork it needs to produce its products, this would be:

Answer 1

requirements contract

Step-by-step explanation:

A requirements contract is signed between a company and its vendor:

• The vendor agrees to supply all the necessary products or services required by the company.
• The company agrees to purchase all the goods and services it requires from only that specific vendor.

Answer 2

The correct answer is a requirements contract.

Step-by-step explanation:

Contract requirements are those essential for a contract to simply be born into legal life, regardless of whether or not it does so with validity or effectiveness. Therefore, they refer to a mere question of fact that could respond to the question: is there a contract? Such requirements are: the expression of will, the existence of an object and a cause. Once these three requirements are met, the previous question can be answered affirmatively. Otherwise there is no contract, the event has not occurred. As the Civil Code does not contain norms related to this question of existence, the courts generally sanction the omission of any of the indicated requirements declaring the contract null.