Equip Corporation agrees to lease a woodchipper to Forest Management LLC. Before any interest in the woodchipper can pass from Equip to Forest, it must be
A)in existence and identified as the goods in the contract.
B)in Equip's physical possession.
C)in Forest's physical possession.
D)listed in a document of title filed in the appropriate state office.

Question

Quizplus · Accepted Answer

For any interest in specific goods to pass from the seller or lessor to the buyer or lessee, the goods must first be in existence and specifically identified as the goods in the contract. This requirement ensures that both parties are clear about the exact items being transacted. Physical possession by either party or listing in a document of title is not a prerequisite for the passing of interest.

Equip Corporation Agrees to Lease a Woodchipper to Forest Management