The manufacturing of goods constitutes a sale of goods (not a service) when the buyer does not provide materials; the place of performance is the final delivery to the recipient.

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In a contract for the sale of goods, performance is defined by delivery of the finished goods to the buyer or to the recipient designated by the buyer. When the buyer does not supply materials and the seller manufactures to fulfill the order, the transaction remains a sale of goods rather than a service, because the core obligation is to transfer ownership of specific goods and deliver them, not to perform a service on materials provided by the buyer.

The place of performance is therefore the point at which delivery occurs—the final delivery to the recipient. This is the moment the seller completes their obligation and title (and usually risk) passes to the buyer. Payment location or timing does not establish the place of performance, and a separate agreement could modify the delivery point only if it expressly states so. Absent such an agreement, the standard rule is delivery at the final delivery to the recipient.