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Question · Distinct goods or services

Agrimek enters into a contract with a farm that includes: the supply of pumps, moisture sensors and control software; the design of an irrigation network specific to the farm; the integration and calibration of the whole by Agrimek to deliver an operational precision irrigation system; and a standard 3-year maintenance service, also offered by other providers and not needed for the system to work. According to the case data, the customer can benefit from the maintenance together with readily available resources. Write a memo identifying the performance obligations in the contract.

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Judgment question: compare your answer with the criteria and the model explanation.

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