| 1. A Both a "sale on approval" or and a "sale or return" is |
distinct should be distinguished from other types of transactions |
with which they frequently have frequently been confused. The |
type of "sale on approval," "on trial" or "on satisfaction" dealt |
A "sale on approval," sometimes also called a sale "on trial" or |
"on satisfaction," deals with a contract under which the seller |
undertakes a particular business risk in order to satisfy his its |
prospective buyer with the appearance or performance of the goods |
in question that are sold. The goods are delivered to the |
proposed purchaser but they remain the property of the seller |
until the buyer accepts them. The price has already been agreed. |
The buyer's willingness to receive and test the goods is the |
consideration for the seller's engagement to deliver and sell. |
The type of "sale or return" involved herein A "sale or return," |
on the other hand, typically is a sale to a merchant whose |
unwillingness to buy is overcome only by the seller's engagement |
to take back the goods (or any commercial unit of goods) in lieu |
of payment if they fail to be resold. A sale or return is a |
present sale of goods which may be undone at the buyer's option.__ |
Accordingly, subsection (2) provides that goods delivered on |
approval are not subject to the prospective buyer's creditors |
until acceptance, and goods delivered in a sale or return are |
subject to the buyer's creditors while in the buyer's possession. |