What type of purchase contract indicates the total monetary amount that can be purchased?

A blanket contract is designed to provide a total monetary limit on purchases. This type of contract allows an organization to buy goods or services over a specified period without having to issue a separate purchase order for each transaction, as long as the cumulative amount does not exceed the agreed-upon total. This can streamline the procurement process for recurring purchases and ensure budget control by clearly defining the maximum financial commitment.

While other contract types may have specific functions, they do not inherently indicate a total monetary cap for purchases in the same straightforward manner. A price contract typically refers to agreed pricing for goods or services but may not include a total monetary limit. A time-based contract usually focuses on the duration of services rendered rather than a total amount, and a conditional contract often relies on specific conditions being met before purchases can be made, rather than outlining a total purchase limit.