Which statement describes a quantity contract?

A quantity contract is an agreement where a buyer commits to purchasing a specific quantity of goods over a specified period, but the exact delivery dates are not fixed. This type of contract typically outlines the total quantity of goods, while allowing for flexibility in terms of when those goods will be delivered. The essence of a quantity contract is to establish a relationship between the buyer and seller where the buyer can request deliveries of the specified quantity based on their needs, without being bound to concrete delivery dates for every single order.

In contrast, fixed delivery dates and quantities are more characteristic of scheduling agreements, which stipulate exact dates and quantities for goods to be delivered. Thus, the concept of a quantity contract focuses on the overall commitment to purchase a defined quantity, providing a framework for future transactions rather than locking in strict scheduling details.