Leasing Equipment Corporation (LEC)agrees to lease five computer workstations to Mapmakers,Inc.Before any inter?est in the workstations can pass from LEC to Mapmakers,they must be
A)in existence and identified as the goods in the contract.
B)in LEC's physical possession.
C)in Mapmakers's physical possession.
D)listed in a document of title and filed in the appropriate state office.

Question

Quizplus · Accepted Answer

According to the Uniform Commercial Code (UCC), for a sales or lease contract to be valid, the goods must be in existence and identified as the subject of the contract. Therefore, the workstations must exist and be identified as the leased equipment before any interest in them can pass from LEC to Mapmakers. Possession or a document of title are not necessary for the validity of the contract.

Leasing Equipment Corporation (LEC)agrees to Lease Five Computer Workstations to Mapmakers,Inc.Before