Which of these three characteristics I, II, and III) are required in order for a promised good or service to be considered distinct? I. Commercial substance
II) Distinct within the context of the contract
III) Capable of being distinct
A) I and II only
B) I and III only
C) II and III only
D) I, II, and III

Question

Quizplus · Accepted Answer

For a good or service to be considered distinct, it must be both capable of being distinct (the customer can benefit from the good or service on its own or together with other resources that are readily available to the customer) and distinct within the context of the contract (the promise to transfer the good or service is separately identifiable from other promises in the contract). Commercial substance is not a criterion for a good or service to be considered distinct.

Which of These Three Characteristics I, II, and III) Are