Identification

Identification

For any interest to pass to buyer, goods must be:

§ In existence.

§ Identified as specific goods in the sales contract (by serial numbers and/or physically separated from others.  Except for fungible goods which do not need separation).

Gives the buyer the right:

§ To obtain insurance on the goods.

§ To recover from third parties who damage the good.

Identification occurs:

§ If goods are designated when contract is made. If goods are not designated when contract is made, then identified at time of designation.