Which characteristic applies to an open-end contract but not a term contract?

• A. Open-end contracts specify quantity; term contracts do not
• B. Open-end contracts allow undefined quantity and duration; term contracts establish quantity and duration
• C. Open-end contracts have fixed prices; term contracts do not
• D. Open-end contracts are only for services

Answer: (B)

The main idea here is how open-end (indefinite-quantity) contracts differ from term contracts in what they commit to in advance. An open-end contract is designed for uncertain or variable needs: it covers a period, but doesn't lock in a specific quantity to be delivered or a fixed schedule of deliveries. Purchases are made as requirements arise, up to any agreed maximum, during the contract term. A term contract, on the other hand, sets a defined time frame and a defined (or bounded) quantity for delivery within that period. So, the characteristic that truly separates them is that open-end contracts allow undefined quantity and duration, while term contracts establish quantity and duration. The other options introduce details like price or service type that aren’t the defining distinction.