Tuan,Inc.contracted to buy 200 monogrammed blankets from Titex,Inc.Before Titex segregated and monogrammed the blankets,Tuan filed for bankruptcy.Tuan does not own title to the blankets because
A)Tuan is a merchant.
B)the blankets were not identified to the contract.
C)Tuan became bankrupt after the contract was formed.
D)the goods were specially manufactured.

Question

Quizplus · Accepted Answer

The blankets were not identified to the contract, meaning that Tuan did not have ownership of the goods at the time of the bankruptcy filing. The Uniform Commercial Code requires that goods be identified to the contract in order for ownership to transfer from the seller to the buyer. Since Tuan did not own the blankets at the time of the bankruptcy filing, they cannot be considered a part of Tuan's bankrupt estate.

Tuan,IncContracted to Buy 200 Monogrammed Blankets from Titex,Inc