Which type of contract allows a buyer to purchase a set percentage of a seller's output?

The correct answer is the output contract. This type of contract specifically allows a buyer to purchase a specified percentage of a seller's total output of goods. The key feature of an output contract is its focus on the seller's production and the commitment to deliver a certain quantity based on the seller's actual output.

In this arrangement, the seller agrees to sell all or a portion of their output to the buyer, which provides a level of certainty for the buyer regarding supply and can also help in demand forecasting. This type of contract is common in industries where production levels can fluctuate, ensuring that buyers have a reliable source of goods based on the seller's capacity.

In contrast, a requirements contract is designed for the buyer to purchase all their needs for a certain product from the seller rather than focusing on the seller's output. This creates a different contractual relationship centered around the buyer’s needs as opposed to the seller’s production. An exclusive distribution contract involves distributing a product in specific markets or territories, which does not inherently relate to the concept of purchasing a set percentage of output. A conditional sales contract, often seen in financing situations, involves conditions that must be met for the buyer to claim ownership of the goods but does not typically address the ongoing output in the same