Skip to Content
The 190th General Court of the Commonwealth of Massachusetts

Section 2-326: Sale on Approval and Sale or Return; Rights of Creditors

Section 2-326. (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 parole or extrinsic evidence (Section 2-202).