Ala. Code § 7-2-326: “Sale on Approval” and “Sale or Return.”
Where this section sits in the code
- Title 7 Commercial Code.
- Article 2 Sales.
- Part 3 General Obligation and Construction of Contract.
(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 7-2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (Section 7-2-202).
Collected 2026-09-03T14:01:51Z. Source file · JSON