Sec. 2.326. SALE ON APPROVAL AND SALE OR RETURN; RIGHTS OF CREDITORS. (a) Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is
(1) a "sale on approval" if the goods are delivered primarily for use, and
(2) a "sale or return" if the goods are delivered primarily for resale.
(b) 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.
(c) 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 chapter (Section 2.201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (Section 2.202).
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967. Amended by Acts 1977, 65th Leg., p. 1530, ch. 623, Sec. 4, eff. Aug. 29, 1977; Acts 1999, 76th Leg., ch. 414, Sec. 2.16, eff. July 1, 2001.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Subchapter C. General Obligation and Construction of Contract
Section 2.301. General Obligations of Parties
Section 2.302. Unconscionable Contract or Clause
Section 2.303. Allocation or Division of Risks
Section 2.304. Price Payable in Money, Goods, Realty, or Otherwise
Section 2.305. Open Price Term
Section 2.306. Output, Requirements and Exclusive Dealings
Section 2.307. Delivery in Single Lot or Several Lots
Section 2.308. Absence of Specified Place for Delivery
Section 2.309. Absence of Specific Time Provisions; Notice of Termination
Section 2.310. Open Time for Payment or Running of Credit; Authority to Ship Under Reservation
Section 2.311. Options and Cooperation Respecting Performance
Section 2.312. Warranty of Title and Against Infringement; Buyer's Obligation Against Infringement
Section 2.313. Express Warranties by Affirmation, Promise, Description, Sample
Section 2.314. Implied Warranty: Merchantability; Usage of Trade
Section 2.315. Implied Warranty: Fitness for Particular Purpose
Section 2.316. Exclusion or Modification of Warranties
Section 2.317. Cumulation and Conflict of Warranties Express or Implied
Section 2.322. Delivery "Ex-Ship"
Section 2.323. Form of Bill of Lading Required in Overseas Shipment; "Overseas"
Section 2.324. "No Arrival, No Sale" Term
Section 2.325. "Letter of Credit" Term; "Confirmed Credit"
Section 2.326. Sale on Approval and Sale or Return; Rights of Creditors
Section 2.327. Special Incidents of Sale on Approval and Sale or Return