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Idaho Code · § 28-2-326 — Sale on approval and sale or return — Rights of creditors

28-2-326. Sale on approval and sale or return — Rights of creditors

(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 chapter (section 28-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (section 28-2-202).

Source notes
History and annotations

28-2-326, added 1967, ch. 161, sec. 2-326, p. 351; am. 2001, ch. 208, sec. 7, p. 808.

Official source for this version

Source captured 2026-09-26. Open the official source.

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