Identification takes place when specific goods are designated as the subject mater of a sales or lease contract.

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Identification plays a crucial role in determining which goods are the subject matter of a sales or lease contract. It refers to the process of selecting a specific item or items from a larger pool of goods and designating them as the ones that will be sold or leased. Depending on the terms of the contract and the nature of the goods involved, identification may take place at different times, such as when the contract is made, when the goods are shipped or delivered, or when payment is made. Overall, identification serves as a key element in ensuring that both parties understand which goods are being exchanged and can therefore fulfill their respective obligations under the contract.

Identification Takes Place When Specific Goods Are Designated as the Subject