Texas Statutes
Subchapter C. General Obligation and Construction of Contract
Section 2.326. Sale on Approval and Sale or Return; Rights of Creditors

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

Texas Statutes

Business and Commerce Code

Title 1 - Uniform Commercial Code

Chapter 2 - Sales

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 2.318. Chapter Neutral on Question of Third Party Beneficiaries of Warranties of Quality and on Need for Privity of Contract

Section 2.319. F

Section 2.320. C

Section 2.321. C

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

Section 2.328. Sale by Auction