Sales and Leases - A Problem-based Approach, 2016a

Chapter 10. Delivery Terms and Title Issues
10.1. Delivery Terms.
10.1.1. Identification of Goods. UCC § 2-501 discusses the concept of “identification of
goods.” Recall that way back in Chapter 2, we saw that § 2-105 defines goods as things which
are movable “at the time of identification to the contract for sale.” It is at this point in time at
which the buyer acquires certain property rights in the goods, but not necessarily title to or
possession of the goods. The buyer might, for example, have an insurable interest in the goods on
identification.
This concept is also important in other UCC provisions to determine the rights of sellers and
buyers in the goods. For example:
Replevin of goods in the seller’s hands under §§ 2-502 and 2-716(3)
Destruction of goods in the seller’s hands under § 2-613
Breach by buyer and seller is unable to sell the goods under § 2-709
Breach by buyer and seller can identify goods in his control at the time of breach under
§ 2-704
10.1.1.1. Establishing the point in time at which “identification of the goods” occurs
depends, in part, upon the type of goods which are the subject matter of the contract. For
example, the subject of the sale may be:
10.1.1.1.1. A particular thing in existence at the time the contract is formed. For
example, at the Charlie Russell Art Auction I walk into an artist’s room and point
out a particular painting I want to purchase.
10.1.1.1.2. The item may be part of a larger stock of similar items held at some
other location by the seller. For example, Bighorn Sports may have a canoe
dangling from the ceiling as part of its sales display, and I want to buy that model
of canoe. I won’t actually buy the one dangling from the ceiling; the store has a
stock of the canoes in its warehouse a few blocks away.
10.1.1.1.3. The goods may not even be in existence yet. For example, I walk into a
jewelry store and ask the jeweler to design and make a ring for me.
10.1.1.1.4. The goods may be crops not yet planted or unborn animals. For
example, Anheuser-Busch may enter into an agreement in September 2015 for a
farmer’s 2016 barley crop which has not yet been planted.
10.1.1.2. The process of designating a particular good as the good “to which the contract
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