The Code provides that goods must be both existing and identified to the contract before any interest in them can pass.

Question

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The UCC Article 2 Section 401(1) states that "Each provision of this Article with regard to the rights, obligations, and remedies of the seller, the buyer, purchasers, or other third-parties applies irrespective of title to the goods except where the provision refers to such title." This means that the law does not require title to the goods to pass before the parties can have valid rights and obligations regarding the sales contract. However, the Code requires that the goods must be both existing and identified to the contract before any interest in them can pass.

The Code Provides That Goods Must Be Both Existing and Identified