Difference between Sale and Agreement to Sell
Assured Success
Introduction;-
Sales of Goods Act deal with all those agreements and contracts in which the transfer of
moveable property from one person to another takes place. There occur numerous
contracts for the sale of goods in which either the goods are delivered immediately or
they are delayed to a certain date. These two possibilities are explored in this Act under
two different topics which are 'Sale & Agreement to Sell'.
Contract of Sale
Under Section#4(1) of Sale of Goods Act, "A contract of sale of goods is a contract
whereby the seller transfers or agrees to transfer the property in goods to buyer for a
price."
Agreement to Sell
Definition of agreement to sell;-
We have studied that, sale is a contract in which there occurs immediate transfer of
possession of goods for a price; on the other hand, Section#4 (3) of the same Act
introduces us with 'Agreement to Sell'. It states that, "An agreement to sell is an
agreement whereby the transfer of the property in goods is to take place at a future time
or subject to some condition thereafter to be fulfilled."
Illustration;-
Barring the presence of two parties, fixation of price and moveable property as
essentials of the agreement to sell; it is the fourth requisite that differs from that of
'contract of sale'. Here, the transfer of goods has not been accomplished but it is due to
a certain date in future or is contingent with the fulfillment of some condition.
Assured Success
Introduction;-
Sales of Goods Act deal with all those agreements and contracts in which the transfer of
moveable property from one person to another takes place. There occur numerous
contracts for the sale of goods in which either the goods are delivered immediately or
they are delayed to a certain date. These two possibilities are explored in this Act under
two different topics which are 'Sale & Agreement to Sell'.
Contract of Sale
Under Section#4(1) of Sale of Goods Act, "A contract of sale of goods is a contract
whereby the seller transfers or agrees to transfer the property in goods to buyer for a
price."
Agreement to Sell
Definition of agreement to sell;-
We have studied that, sale is a contract in which there occurs immediate transfer of
possession of goods for a price; on the other hand, Section#4 (3) of the same Act
introduces us with 'Agreement to Sell'. It states that, "An agreement to sell is an
agreement whereby the transfer of the property in goods is to take place at a future time
or subject to some condition thereafter to be fulfilled."
Illustration;-
Barring the presence of two parties, fixation of price and moveable property as
essentials of the agreement to sell; it is the fourth requisite that differs from that of
'contract of sale'. Here, the transfer of goods has not been accomplished but it is due to
a certain date in future or is contingent with the fulfillment of some condition.
