Tex. Bus. & Com. Code Section 2.327
Special Incidents of Sale on Approval and Sale or Return

(a)

Under a sale on approval unless otherwise agreed

(1)

although the goods are identified to the contract the risk of loss and the title do not pass to the buyer until acceptance; and

(2)

use of the goods consistent with the purpose of trial is not acceptance but failure seasonably to notify the seller of election to return the goods is acceptance, and if the goods conform to the contract acceptance of any part is acceptance of the whole; and

(3)

after due notification of election to return, the return is at the seller’s risk and expense but a merchant buyer must follow any reasonable instructions.

(b)

Under a sale or return unless otherwise agreed

(1)

the option to return extends to the whole or any commercial unit of the goods while in substantially their original condition, but must be exercised seasonably; and

(2)

the return is at the buyer’s risk and expense.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967.

Source: Section 2.327 — Special Incidents of Sale on Approval and Sale or Return, https://statutes.­capitol.­texas.­gov/Docs/BC/htm/BC.­2.­htm#2.­327 (accessed Jun. 5, 2024).

2.101
Short Title 2.102
Scope 2.103
Definitions and Index of Definitions 2.107
Goods to Be Severed from Realty: Recording 2.201
Formal Requirements 2.202
Final Written Expression: Parol or Extrinsic Evidence 2.203
Seals Inoperative 2.204
Formation in General 2.205
Firm Offers 2.206
Offer and Acceptance in Formation of Contract 2.207
Additional Terms in Acceptance or Confirmation 2.209
Modification, Rescission and Waiver 2.210
Delegation of Performance 2.301
General Obligations of Parties 2.302
Unconscionable Contract or Clause 2.303
Allocation or Division of Risks 2.304
Price Payable in Money, Goods, Realty, or Otherwise 2.305
Open Price Term 2.306
Output, Requirements and Exclusive Dealings 2.307
Delivery in Single Lot or Several Lots 2.308
Absence of Specified Place for Delivery 2.309
Absence of Specific Time Provisions 2.310
Open Time for Payment or Running of Credit 2.311
Options and Cooperation Respecting Performance 2.312
Warranty of Title and Against Infringement 2.313
Express Warranties by Affirmation, Promise, Description, Sample 2.314
Implied Warranty: Merchantability 2.315
Implied Warranty: Fitness for Particular Purpose 2.316
Exclusion or Modification of Warranties 2.317
Cumulation and Conflict of Warranties Express or Implied 2.318
Chapter Neutral on Question of Third Party Beneficiaries of Warranties of Quality and on Need for Privity of Contract 2.326
Sale on Approval and Sale or Return 2.327
Special Incidents of Sale on Approval and Sale or Return 2.328
Sale by Auction 2.401
Passing of Title 2.402
Rights of Seller’s Creditors Against Sold Goods 2.501
Insurable Interest in Goods 2.502
Buyer’s Right to Goods on Seller’s Repudiation, Failure to Deliver, or Insolvency 2.503
Manner of Seller’s Tender of Delivery 2.504
Shipment by Seller 2.505
Seller’s Shipment Under Reservation 2.506
Rights of Financing Agency 2.507
Effect of Seller’s Tender 2.508
Cure by Seller of Improper Tender or Delivery 2.509
Risk of Loss in the Absence of Breach 2.510
Effect of Breach on Risk of Loss 2.511
Tender of Payment by Buyer 2.512
Payment by Buyer Before Inspection 2.513
Buyer’s Right to Inspection of Goods 2.514
When Documents Deliverable on Acceptance 2.515
Preserving Evidence of Goods in Dispute 2.601
Buyer’s Rights on Improper Delivery 2.602
Manner and Effect of Rightful Rejection 2.603
Merchant Buyer’s Duties as to Rightfully Rejected Goods 2.604
Buyer’s Options as to Salvage of Rightfully Rejected Goods 2.605
Waiver of Buyer’s Objections by Failure to Particularize 2.606
What Constitutes Acceptance of Goods 2.607
Effect of Acceptance 2.608
Revocation of Acceptance in Whole or in Part 2.609
Right to Adequate Assurance of Performance 2.610
Anticipatory Repudiation 2.611
Retraction of Anticipatory Repudiation 2.613
Casualty to Identified Goods 2.614
Substituted Performance 2.615
Excuse by Failure of Presupposed Conditions 2.616
Procedure on Notice Claiming Excuse 2.701
Remedies for Breach of Collateral Contracts Not Impaired 2.702
Seller’s Remedies on Discovery of Buyer’s Insolvency 2.703
Seller’s Remedies in General 2.704
Seller’s Right to Identify Goods to the Contract Notwithstanding Breach or to Salvage Unfinished Goods 2.705
Seller’s Stoppage of Delivery in Transit or Otherwise 2.706
Seller’s Resale Including Contract for Resale 2.708
Seller’s Damages for Non-acceptance or Repudiation 2.709
Action for the Price 2.710
Seller’s Incidental Damages 2.711
Buyer’s Remedies in General 2.713
Buyer’s Damages for Non-delivery or Repudiation 2.714
Buyer’s Damages for Breach in Regard to Accepted Goods 2.715
Buyer’s Incidental and Consequential Damages 2.716
Buyer’s Right to Specific Performance or Replevin 2.717
Deduction of Damages from the Price 2.718
Liquidation or Limitation of Damages 2.719
Contractual Modification or Limitation of Remedy 2.721
Remedies for Fraud 2.722
Who Can Sue Third Parties for Injury to Goods 2.723
Proof of Market Price: Time and Place 2.724
Admissibility of Market Quotations 2.725
Statute of Limitations in Contracts for Sale
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Accessed:
Jun. 5, 2024

§ 2.327’s source at texas​.gov