Identification.

Identification of goods as goods to which a lease contract refers may be made at any time and in any manner explicitly agreed to by the parties. In the absence of explicit agreement, identification occurs: When the lease contract is made if the lease contract is for a lease of goods that are existing and identified; When the goods are shipped, marked, or otherwise designated by the lessor as goods to which the lease contract refers, if the lease contract is for a lease of goods that are not existing and identified; or When the young are conceived, if the lease contract is for a lease of unborn young of animals. “Party”. Section 1-201(29). “Lessor”. Section 2A-103(1)(p). “Lease contract”. Section 2A-103(1)(l). “Lease”. Section 2A-103(1)(j). “Goods”. Section 2A-103(1)(h). Definitional Cross References: “Agreement”. Section 1-201(3). Cross References:Sections 2-501 and 2A-218. Purposes: With respect to subsection (b) there is a certain amount of ambiguity in the reference to when goods are designated, e.g., when the lessor is both selling and leasing goods to the same lessee/buyer and has marked goods for delivery but has not distinguished between those related to the lease contract and those related to the sales contract. As in Section 2-501(1)(b), this issue has been left to be resolved by the courts, case by case. Changes: This section, together with Section 2A-218, is derived from the provisions of Section 2-501, with changes to reflect lease terminology; however, this section omits as irrelevant to leasing practice the treatment of special property. Uniform Statutory Source:Section 2-501.