Office Equipment Leasing, Inc. (OEL), agrees to lease five computer work?stations to Product Promotion Corporation (PPC). Before any inter?est in the workstations can pass from OEL to PPC, they must be

Question

Quizplus · Accepted Answer

The requirement for passing interest in goods from the lessor to lessee under a lease agreement is that the goods must be both in existence and identified as the specific goods that are the subject of the contract. Option A is the only choice that satisfies both conditions. Therefore, before any interest can pass from OEL to PPC, the workstations must not only exist but must also be identified as the specific goods that are being leased under the contract.