Requirement contracts, while considered to be a species of executory contracts, actually are a genus in themselves because of the unique rules that cover a breach of such contracts. While normally an executory contract is considered breached when one of the parties fails to perform within the time limit set for performance, that is generally not true for both parties of a requirements contract. "A requirements buyer does not breach his contract when requirements for supplies diminish or when he ceases to have requirements by reason of his going out of business." This article deals exclusively with this uniqueness of requirement contracts and how it affects provable claims in bankruptcy when the requirements buyer is the bankrupt.
Gary B. Pingel,
Requirement Contracts in Bankruptcy,
49 Neb. L. Rev. 157
Available at: http://digitalcommons.unl.edu/nlr/vol49/iss1/10