Question

26 multiple choice 4 points marco agrees to sell clowns r us some balloons. the contract states that clowns may buy as many balloons as it wishes. this agreement is: a requirements contract. an output contract. an illusory contract. an enforceable contract.

Explanation:

• A requirements contract is one where a buyer agrees to purchase all of their requirements of a particular good or service from a seller. In this case, Clowns R Us can buy as many balloons as it wishes (its requirements) from Marco.
• An output contract is when a seller agrees to sell all of its output of a good to a buyer. This is not the case here.
• An illusory contract is one where a party's promise is not binding. Here, Marco is bound (assuming other contract elements like consideration, offer, acceptance are met) as Clowns R Us has a legal right (though it can choose quantity within its requirements).
• Since it's a requirements contract (assuming other contract - forming elements are present), it is enforceable. But the key classification here based on the description is a requirements contract.

Answer:

a requirements contract.