810                             LAWS OF MARYLAND                       [CH. 538

(a)  the seller must properly ship conforming goods and if they
arrive by any means he must tender them on arrival but he assumes
no obligation that the goods will arrive unless he has caused the non-
arrival; and

(b)  where without fault of the seller the goods are in part lost or
have so deteriorated as no longer to conform to the contract or arrive
after the contract time, the buyer may proceed as if there had been
casualty to identified goods (Section 2—613).

2—325. "Letter of Credit" Term; "Confirmed Credit".

(1)  Failure of the buyer seasonably to furnish an agreed letter
of credit is a breach of the contract for sale.

(2)   The delivery to seller of a proper letter of credit suspends the
buyer's obligation to pay. If the letter of credit is dishonored, the
seller may on seasonable notification to the buyer require payment
directly from him.

(3) Unless otherwise agreed the term "letter of credit" or "bank-
er's credit" in a contract for sale means an irrevocable credit issued
by a financing agency of good repute and, where the shipment is over-
seas, of good international repute. The term "confirmed credit"
means that the credit must also carry the direct obligation of such
an agency which does business in the seller's financial market.

2—326. Sale on Approval and Sale or Return; Consignment Sales
and Rights of Creditors.

(1)   Unless otherwise agreed, if delivered goods may be returned
by the buyer even though they conform to the contract, the transac-
tion 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)  Except as provided in sub-section (3), 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)   Where goods are delivered to a person for sale and such per-
son maintains a place of business at which he deals in goods of the
kind involved, under a name other than the name of the person
making delivery, then with respect to claims of creditors of the per-
son conducting the business the goods are deemed to be on sale or
return. The provisions of this sub-section are applicable even though
an agreement purports to reserve title to the person making delivery
until payment or resale or uses such words as "on consignment" or
"on memorandum". However, this sub-section is not applicable if
the person making delivery

(a)  complies with an applicable law providing for a consignor's
interest or the like to be evidenced by a sign, or

(b)  establishes that the person conducting the business is generally
known by his creditors to be substantially engaged in selling the
goods of others, or