Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Sales and Use Tax Annotations


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C

190.0000 CONSTRUCTION CONTRACTORS—Regulation 1521

Annotation 190.3000

(e) FIXED-PRICE CONTRACTS

190.3000 Prior to July 15, 1991. A contractual agreement, executed June 12, 1991 obligates both the buyer and the seller to purchase/sell $250,000 worth of insulation products over an open ended period of time.

This contract appears to be a requirements contract. A true requirements contract requires that the buyer agrees to fill all his needs from the seller whereas in this contract a dollar limit is set. In addition there is no per unit price, leaving the amount of units in doubt. The open ended time period for delivery would render it difficult if not impossible to fashion a remedy between the parties. This agreement is not for a fixed price within the meaning of section 6376.1. 12/13/91.