output contract
output contract, defined:
a contractual agreement between seller and buyer for the purchase of the total production or output of the seller. An output contract is usually limited to some period of time or for interval of a particular project. The defense industry commonly uses output contracts in procurement.
output contract, as it might be used:
The output contract lasted a period of one year.
An example of output contract:
Ogden works for a coal mining company in South Carolina. A regional electricity company enters into an output contract with the mining company, agreeing to buy all the coal produced by the mine for a period of one year at a fixed price per metric ton.
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Clear-Point Law Dictionary
