(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 2-201) and as contradicting the sale aspect of the contract within the provisions of this Article on parol or extrinsic evidence (Section 2-202).
Structure Delaware Code
Part 3. General Obligation and Construction of Contract
§ 2-301. General obligations of parties.
§ 2-302. Unconscionable contract or clause.
§ 2-303. Allocation or division of risks.
§ 2-304. Price payable in money, goods, realty, or otherwise.
§ 2-306. Output, requirements and exclusive dealings.
§ 2-307. Delivery in single lot or several lots.
§ 2-308. Absence of specified place for delivery.
§ 2-309. Absence of specific time provisions; notice of termination.
§ 2-310. Open time for payment or running of credit; authority to ship under reservation.
§ 2-311. Options and cooperation respecting performance.
§ 2-312. Warranty of title and against infringement; buyer's obligation against infringement.
§ 2-313. Express warranties by affirmation, promise, description, sample.
§ 2-314. Implied warranty; merchantability; usage of trade.
§ 2-315. Implied warranty; fitness for particular purpose.
§ 2-316. Exclusion or modification of warranties.
§ 2-317. Cumulation and conflict of warranties express or implied.
§ 2-318. Third party beneficiaries of warranties express or implied.
§ 2-319. F.O.B. and F.A.S. terms.
§ 2-320. C.I.F. and C. & F. terms.
§ 2-323. Form of bill of lading required in overseas shipment; “overseas.”
§ 2-324. “No arrival, no sale” term.
§ 2-325. “Letter of credit” term; “confirmed credit.”
§ 2-326. Sale on approval and sale or return; rights of creditors.
§ 2-327. Special incidents of sale on approval and sale or return.