The Emmett School District (ESD) contracts with the GoldenFarms Dairy for "all of the milk" GoldenFarms can produce during ESD's current school year.The contract specifies a price,but no exact quantity of milk to be purchased is set in the contract.This contract is a(n) :

A) invalid contract because no quantity is set.
B) valid requirements contract.
C) valid output contract.
D) invalid contract because consideration is missing.

Requirements Contract

An agreement in which one party agrees to purchase all of his or her requirements of a particular product from another party. See also output contract.

Output Contract

An agreement in which a seller agrees to sell “all the goods we manufacture” or “all the crops we produce” to a particular buyer. See also requirements contract.

Valid Contract

A contract that is legally binding and fully enforceable by the court.