Connecticut General Statutes 42a-2-326 – Sale on approval and sale or return; rights of creditors
Current as of: 2023 | Check for updates
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(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.
Terms Used In Connecticut General Statutes 42a-2-326
- Buyer: means a person who buys or contracts to buy goods. See Connecticut General Statutes 42a-2-103
- Contract: A legal written agreement that becomes binding when signed.
- Contract for sale: includes both a present sale of goods and a contract to sell goods at a future time. See Connecticut General Statutes 42a-2-106
(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 § 42a-2-201 and as contradicting the sale aspect of the contract within the provisions of § 42a-2-202.