Question

Oxtron, Inc. sent the following price list to its customers.​ Dispensers: SBC-500J $670.00 True TDD-1 $875.00 True TDD-2 $1,465.00 True TDD-3 $1,515.00 CO2 Tank and Regulator $150.00 ​ Which statement is correct? These price quotes would generally be considered offers. These price quotes would generally not be considered offers. These price quotes would generally be considered output contracts. These price quotes would generally be considered requirements contracts.

Answer 1

The second statement is correct.

This is not an offer but is just information given to the customers. This is not an output contract since output contract is an agreement in which a maker promises to sell the entire production to the buyer who agrees to buy the entire output. It is also not a requirements contract since the manufacturer has not agreed to supply as much goods as required by the other party. This is not a offer since this is not a promise in exchange for performance by another party.