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Official Code of Georgia Annotated

Title 11. COMMERCIAL CODE · Chapter 2. · Article 2. SALES · Part 3. GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT

11-2-326. Sale on approval and sale or return; rights of creditors.

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Current through: Including Acts of the 2025 Regular Session of the General Assembly.

  1. (1)

    Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is:#

    1. (a)

      A “sale on approval” if the goods are delivered primarily for use; and#

    2. (b)

      A “sale or return” if the goods are delivered primarily for resale.#

  2. (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. (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 (Code Section 11-2-201) and as contradicting the sale aspect of the contract within the provisions of this article on parol or extrinsic evidence (Code Section 11-2-202).#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1933, § 109A-2-326, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1963, p. 188, § 2; Ga. L. 2001, p. 362, § 6.

Law reviews

For survey article on commercial law, see 34 Mercer L. Rev. 31 (1982).

Read the official page (the state's PDF, opened at the page this text was read from).

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t11-(v9)-2022-pdf.pdf, Volume V9, 2022 edition, page 165; merge action: carried; file SHA-256 ad397fccbf21.