Question

1 .Identify two actions judges can take with regard to contract law that create contracts where there isn’t one between two parties.

2. What is the difference between outputs and requirements contracts? Give an example of each.

Answer 1

1.two actions judges can take with regard to contract law that create contracts where there isn’t one between two parties
I) first judge can
a vital element in the law of contracts, consideration is a benefit which must be bargained for between the parties, and is the essential reason for a party entering into a contract. In a contract, one consideration (thing given) is exchanged for another consideration.
Ii)
valid contract is a written or expressed agreement between two parties to provide a product or service. There are essentially six elements of a contract that make it a legal and binding document. In order for a contract to be enforceable, it must contain: . Intent of both parties to carry out their promise.

2.Output Contract Different from a Requirement Contract :-

An Output contact is an agreement in which buyer purchase all the production of seller
Example:- chicken farmer agrees to sell only to chicken company all chicken produced
A requirements contact is an agreement in which Seller must provide all requirements of the buyer
Example:- Textile Inc . Must provide all fabric required by t-shirt LLC
For production

Output contracts can be helpful to buyers when there is uncertainty regarding market supply or demand for a particular good. However, if the seller’s output is more than the buyer requires, an output contract may not be exactly the vehicle you need to secure your supplies.
Another similar type of contract for the sale of goods is called a requirement contract. Requirements contracts have an important difference that distinguishes them from output contracts. While output contracts are agreements for the buyer to purchase all of an item that the seller can supply, requirement contracts are agreements for the seller to sell as much of an item as the buyer requires.
In these types of contracts (both output and requirement), the amount of goods being bought or sold is generally determined by the buyer’s requirements or the seller’s production, and not by a particular set number. Requirements contracts often allow sellers to sell their goods to other buyers as well, so long as the contract buyer’s requirements are fulfilled.
Output contracts, however, often include clauses that restrict sellers from selling to other buyers (since the initial seller has agreed to sell all of their production to one buyer, the agreement is exclusive).