§ 26-1-2-326 — Sale on approval and sale or return

Indiana § 26-1-2-326

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 2: Sales

Text

(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 (IC 26-1-2-201) and as contradicting the sale aspect of the contract within
the provisions of IC 26-1-2-202 on parol or extrinsic evidence.
Formerly: Acts 1963, c.317, s.2-326. As amended by
P.L.152-1986, SEC.140; P.L.57-2000, SEC.17; P.L.1-2025,
SEC.219.