Question

What is identification? When does it take effect? What is the significance of identification for the owner of goods?

Answer 1

Identification of the contract here means that the seller chooses the products to be sold out of the mass of inventory in one way or another, so that they can be shipped or kept for the buyer.

Before any interest in specific goods can pass from seller to buyer or from lessor to lessee (but here title remains with the lessor), two conditions must be met: Identification is significant because it allows the buyer or lessee to insure the goods and to recover from third parties (in transit or otherwise) that damage the goods. (more on this later) Where the contract provides for the selling or lease of goods which already exist in their final form, identification shall take place at the time the contract is concluded.

Where the contract provides for the selling or lease of goods that have yet to be completed or changed in compliance with the contract or for the selling of fungible goods, the designation shall occur when the goods are delivered, signed or otherwise approved by the seller or lessor for delivery to the buyer or lessee.