§ 336.2-326 — Sale on Approval and Sale or Return; Rights of Creditors
Plain-Language Summary
Goods delivered on 'sale on approval' remain the seller's property until the buyer accepts. Goods delivered on 'sale or return' become the buyer's property and are subject to the buyer's creditors. Items delivered primarily for resale are 'sale or return.'
336.2-326 SALE ON APPROVAL AND SALE OR RETURN; RIGHTS OF CREDITORS.
(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 article (section 336.2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (section 336.2-202).
History:
1965 c 811 s 336.2-326; 1986 c 444; 2000 c 399 art 2 s 5
History: History: 1965 c 811 s 336.2-326; 1986 c 444; 2000 c 399 art 2 s 5