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Matrix Corporation, a Computer Manufacturer, Agrees to Purchase from Chipmaster

Question 54

Multiple Choice

Matrix Corporation, a computer manufacturer, agrees to purchase from Chipmaster, Inc. all the computer chips that Chipmaster can produce during the next 12 months, at cost plus a twelve-percent markup. Matrix later does not purchase any computer chips during the 12 months year. Can Chipmaster enforce the agreement made with it?


A) Yes, this is an enforceable requirement contract.
B) No, the price is not sufficiently defined.
C) No, the agreement to purchase is illusory.
D) Yes, this is an enforceable output contract.

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