A more thorough explanation:

A requirements contract is a type of agreement between a buyer and a seller where the seller agrees to provide the buyer with all the goods they need, and the buyer agrees to purchase those goods exclusively from the seller. This means that the buyer is obligated to buy all of their needed goods from the seller, and the seller is obligated to provide those goods to the buyer.

For example, if a restaurant enters into a requirements contract with a supplier for all of their food and beverage needs, the restaurant is obligated to purchase all of their food and beverages from that supplier, and the supplier is obligated to provide all of the food and beverages the restaurant needs.

It's important to note that the buyer must request the quantities in good faith, and the quantities cannot be unreasonably disproportionate to any stated estimates or comparable quantities. Additionally, the seller must use their best efforts in providing the buyer with the products.

An example of a requirements contract dispute can be seen in the case of Schawk, Inc. v. Donruss Trading Cards, Inc. In this case, the parties disputed over a requirements contract that provided that one party provide all the prepress art services that the other party needed to print sports trading cards for five years.