The answer to this question is the "output contract". This is a mutual agreement between the producer of the product and the buyer. The producer agrees that he will sell all his product to the buyer and the buyer agrees that he will buy all the product delivered to him by the producer. Thus, to complete the sentence we have it "Bay crab processor has a contract with Jim who is a local crabber and inform Jim that he will buy all the crabs. Then, Jim catches during the season for 35 per bushel. this is an example of an OUTPUT contract."
