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output contract

n. an agreement in which a producer agrees to sell its entire production to the buyer, who in turn agrees to purchase the entire output, whatever that is. Example: an almond grower has a "home" for his output, and the packer of nuts is happy to have a sure-fire supply, even though it may have to store away a glut.


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The People's Law Dictionary by Gerald and Kathleen Hill Publisher Fine Communications

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