Sale on approval and sale or return

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    (1)    Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is

        (a)    A “sale on approval” if the goods are delivered primarily for use, and

        (b)    A “sale or return” if the goods are delivered primarily for resale.

    (2)    Goods held on approval are not subject to the claims of the buyer’s creditors until acceptance; goods held on sale or return are subject to such claims while in the buyer’s possession.

    (3)    Any “or return” term of a contract for sale is to be treated as a separate contract for sale within the statute of frauds section of this title (§ 2-201) and as contradicting the sale aspect of the contract within the provisions of this title on parole or extrinsic evidence (§ 2-202).


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