Legal Definitions - entire-output contract

An entire-output contract is a type of contract where a buyer agrees to purchase all of a seller's output of a particular product or service. This means that the seller is obligated to sell everything they produce to the buyer, and the buyer is obligated to purchase everything the seller produces.

For example, a farmer may enter into an entire-output contract with a grocery store chain to sell all of their apples. The farmer is obligated to sell all of their apples to the grocery store chain, and the grocery store chain is obligated to purchase all of the apples the farmer produces.

This type of contract can provide security for both parties, as the seller knows they have a guaranteed buyer for their entire output, and the buyer knows they will receive a consistent supply of the product or service they need.