Contracts and Sales Multistate Bar Practice Exam

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Which term is NOT a trigger word for requirement/output contracts?

Must
Produce
Exclusively
Require

The correct answer is: Must

The term "must" does not typically function as a trigger word for requirement/output contracts. Requirement contracts are agreements where one party agrees to purchase all of a specific need from the other party, creating an obligation to supply as requirements arise. The common trigger words that indicate this kind of arrangement include "produce," "exclusively," and "require." "Produce" emphasizes the obligation of the seller to create or supply the goods as needed. "Exclusively" indicates that the buyer will source their needs solely from that seller, reinforcing the commitment involved in a requirement contract. "Require" reflects the buyer's needs in relation to the seller's obligations. In contrast, "must" is more of a general term that indicates necessity but does not clarify the nature of the agreement concerning the quantity or exclusivity that is characteristic of requirement/output contracts. Therefore, the lack of specificity in "must" compared to the other terms is why it is not considered a trigger word for such contracts.