J. MILLARD TAWES, Governor                        797

includes the unborn young of animals and growing crops and other
identified things attached to realty as described in the section on
goods to be severed from realty (Section 2—107).

(2) Goods must be both existing and identified before any interest
in them can pass. Goods which are not both existing and identified
are "future" goods. A purported present sale of future goods or of
any interest therein operates as a contract to sell.

(3) There may be a sale of a part interest in existing identified
goods.

(4) An undivided share in an identified bulk of fungible goods is
sufficiently identified to be sold although the quantity of the bulk is
not determined. Any agreed proportion of such a bulk or any quan-
tity thereof agreed upon by number, weight or other measure may
to the extent of the seller's interest in the bulk be sold to the buyer
who then becomes an owner in common.

(5)  "Lot" means a parcel or a single article which is the subject
matter of a separate sale or delivery, whether or not it is sufficient
to perform the contract.

(6)  "Commercial unit" means such a unit of goods as by commer-
cial usage is a single whole for purposes of sale and division of which
materially impairs its character or value on the market or in use. A
commercial unit may be a single article (as a machine) or a set of
articles (as a suite of furniture or an assortment of sizes) or a quan-
tity (as a bale, gross, or carload) or any other unit treated in use or
in the relevant market as a single whole.

2—106. Definitions: "Contract"; "Agreement"; "Contract for Sale";
"Sale"; "Present Sale"; "Conforming" to Contract; "Termination";
"Cancellation".

(1)  In this Sub-title unless the context otherwise requires "con-
tract" and "agreement" are limited to those relating to the present
or future sale of goods. "Contract for sale" includes both a present
sale of goods and a contract to sell goods at a future time. A "sale"
consists in the passing of title from the seller to the buyer for a price
(Section 2—401). A "present sale" means a sale which is accom-
plished by the making of the contract.

(2)   Goods or conduct including any part of a performance are
"conforming" or conform to the contract when they are in accordance
with the obligations under the contract.

(3)  "Termination" occurs when either party pursuant to a power
created by agreement or law puts an end to the contract otherwise
than for its breach. On "termination" all obligations which are still
executory on both sides are discharged but any right based on prior
breach or performance survives.

(4) "Cancellation" occurs when either party puts an end to the
contract for breach by the other and its effect is the same as that of
"termination" except that the cancelling party also retains any
remedy for breach of the whole contract or any unperformed balance.

2—107. Goods To Be Severed From Realty; Recording.

(1) A contract for the sale of timber, minerals or the like or a