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Alabama · Through Act 2026-611

Ala. Code § 7-2-326: “Sale on Approval” and “Sale or Return.”

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Where this section sits in the code
  1. Title 7 Commercial Code.
  2. Article 2 Sales.
  3. 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

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