There is a newer version
of
this Section
2021 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 (2021)
Learn more
This media-neutral citation is based
on the American Association of Law Libraries Universal Citation Guide and is not
necessarily the official citation.
- 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).
Disclaimer: These codes may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.