Equipment Rentals Corporation (ERC)agrees to lease two backhoes to Dig & Fill Construction,Inc. Before any inter-est in the backhoes can pass from ERC to Dig & Fill,they must be

Question

Quizplus · Accepted Answer

According to the Uniform Commercial Code (UCC), in order for the interest in the backhoes to pass from ERC to Dig & Fill, they must be in existence and identified as the goods in the contract. This means that the backhoes must physically exist and be specifically designated as the items being leased before Dig & Fill can take possession and fulfill the terms of the contract. Possession is not necessary for the transfer of ownership, as long as the goods are identified and exist. Option B and C are not correct because physical possession is not necessary for the transfer of ownership. Option D is not correct as filing a document of title is only necessary for certain types of goods such as automobiles or boats.

Equipment Rentals Corporation (ERC)agrees to Lease Two Backhoes to Dig