Indiana § 26-1-2-326 - Sale on approval and sale or return
Full text of Indiana Indiana Code § 26-1-2-326 — Sale on approval and sale or return, with citation guidance and answers to common questions.
§ 26-1-2-326. Sale on approval and sale or return
Sec. 326. (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 (IC 26-1-2-201) and as contradicting the sale aspect of the contract within the provisions of IC 26-1-2-202 on parol or extrinsic evidence.
Formerly: Acts 1963, c.317, s.2-326. As amended by P.L.152-1986, SEC.140; P.L.57-2000, SEC.17; P.L.1-2025, SEC.219.
Source: official Indiana text · Last verified 2026-08-27
Frequently Asked Questions About Indiana § 26-1-2-326
What does Indiana Code § 26-1-2-326 cover?
Section 26-1-2-326 ("Sale on approval and sale or return") is part of the Indiana Code, the codified statutory law of Indiana. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Indiana § 26-1-2-326?
A common citation format is "Indiana Code § 26-1-2-326" (Indiana). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Indiana law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Indiana official source linked on this page or consult a licensed Indiana attorney.
How does Indiana § 26-1-2-326 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Indiana can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Indiana.