In January,Eddie contracts to sell 100 bushels of soybeans in the fall.This contract
A)is void.He cannot contract to sell a crop before it is even planted;the goods must be in existence.
B)is void.The soybeans must be identified to the contract at the time he contracts to sell them.
C)can be valid,but title to the soybeans cannot pass until the soybeans exist.
D)can be valid,and title to the soybeans passes when the contract is signed.

Question

Quizplus · Accepted Answer

A contract for future crops can be valid, but title to the soybeans cannot pass until they actually exist. The parties can enter into a valid contract for the sale of goods that are not yet in existence (i.e. future goods). However, the contract must indicate that the goods are future goods, and title cannot pass until the goods come into existence. In this case, Eddie is selling future goods (soybeans to be harvested in the fall), and therefore the contract is valid but title does not transfer until the soybeans are harvested.

In January,Eddie Contracts to Sell 100 Bushels of Soybeans in the Fall.This