There is a newer version of this Section
2020 Tennessee Code
Title 47 - Commercial Instruments and Transactions
Chapter 2 - Sales
Part 3 - General Obligation and Construction of Contract
§ 47-2-326. Sale on Approval and Sale or Return — Consignment Sales and Rights of Creditors
Universal Citation: TN Code § 47-2-326 (2020)
- Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is:
- a “sale on approval” if the goods are delivered primarily for use, and
- a “sale or return” if the goods are delivered primarily for resale.
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.
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 chapter (§47-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (§47-2-202).
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