Massachusetts General Laws ch. 106 sec. 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
Terms Used In Massachusetts General Laws ch. 106 sec. 2-326
- Buyer: means a person who buys or contracts to buy goods. See Massachusetts General Laws ch. 106 sec. 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 Massachusetts General Laws ch. 106 sec. 2-106
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Statute: A law passed by a legislature.
(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).