OUTPUT CONTRACT Meaning and
Definition
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An output contract refers to a type of agreement or contract between parties in which the seller agrees to provide or produce all of their output of a particular product or service to the buyer. In other words, it is an arrangement that requires the seller to sell and the buyer to purchase the entire quantity or volume of goods or services produced by the seller.
In an output contract, the quantity of goods or services to be purchased or sold is not specifically defined, but rather depends on the output or production capacity of the seller. The buyer agrees to purchase whatever amount of output the seller produces, and the seller commits to selling their entire production output exclusively to the buyer.
This type of contract is commonly used in industries where the seller's production output may vary significantly, such as agricultural or manufacturing sectors. It provides stability and guarantees a market for the seller's output while ensuring a consistent supply for the buyer.
Output contracts often incorporate provisions such as quality standards, delivery schedules, and pricing mechanisms to govern the terms of the agreement. They are typically long-term agreements, and both parties rely on each other's performance to fulfill their obligations under the contract.
Overall, an output contract is a legally binding agreement between a seller and a buyer, wherein the seller commits to delivering their entire production output to the buyer, while the buyer commits to purchasing all of the seller's output.
Common Misspellings for OUTPUT CONTRACT
- iutput contract
- kutput contract
- lutput contract
- putput contract
- 0utput contract
- 9utput contract
- oytput contract
- ohtput contract
- ojtput contract
- oitput contract
- o8tput contract
- o7tput contract
- ourput contract
- oufput contract
- ougput contract
- ouyput contract
- ou6put contract
- ou5put contract
- outout contract
Etymology of OUTPUT CONTRACT
The etymology of the word "output contract" can be traced back to its components, "output" and "contract".
1. Output: The word "output" originated from the verb "to put out" in Middle English, which meant to produce, emit, or present something. It is derived from the Old English word "ūt" (out) and "putian" (to bring, to send). The meaning of "output" evolved over time to represent the amount or quantity of something produced.
2. Contract: The word "contract" originated from the Latin term "contractus", which meant a drawn together or tightened bond or agreement. It is derived from the verb "contrahere", which means to draw together. In Roman legal context, a "contractus" was a legally binding agreement between parties.
Similar spelling word for OUTPUT CONTRACT
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