A seller and buyer have just agreed that the buyer will purchase 1,000 of the widgets from the thousands that the seller has in its warehouse.The buyer will pick them up at the seller's warehouse.The day before the buyer is to pick them up,the seller's employee sets the 1,000 widgets aside.What is the significance of setting the buyer's widgets aside?

Question

Quizplus · Accepted Answer

Setting the buyer's widgets aside constitutes identification, which is a crucial step in transferring ownership and shifting the risk of loss from the seller to the buyer. Identification also terminates the seller's ability to sell the widgets to someone else and the buyer's ability to revoke the contract. However, it does not fully discharge the seller's duties under the contract, as the seller may still have obligations related to delivery, quality, and payment.

A Seller and Buyer Have Just Agreed That the Buyer