File Name: difference between sale and agreement to sell .zip
- Distinguish between Sale and Agreement to sell.
- Difference Between Sale And Agreement To Sell Pdf
- Sale and Agreement to Sell
- Difference Between Sale and Agreement to sell
Distinguish between Sale and Agreement to sell.
This article talks mostly about two basic concepts of sale and agreement to sell, various statutory provisions that are related to it and also about their difference. The basis of Indian society is a contract. The very foundation of Indian society was based on the Social Contract Theory. Thus, contracts are the roots of the law which deals with business, transactions of the Indian economy as well as the society. Thus it helps to enhance, encourage and promote business transactions where the seller transfers or agrees to transfer the title in the goods to the buyer for consideration. One of the foundation concepts in the Sale of Goods Act , is the sale and an agreement to sell. Section 4 of the Sale of Goods Act specifically deals with sale and agreement to sell.
Am loving this but therw are no various explanations given and besides the cases on different occasions are missing thnkx. Fascinating subject for a blog. Law firm. In contract of sale the property in goods transfers from seller to buyer immediately on the other hand in Agreement to sell property in goods does not transfer immediately. Section 4 of the Sale of Goods Act defines sale and Agreement to sell as :. There may be a contract of sale between one part-owner and another. Main Differences between Sale and Agreement to Sell.
Difference Between Sale And Agreement To Sell Pdf
If the property in the goods is transferred transfer of ownership from the seller to the buyer immediately it is known as sale. If the property in goods is to be transferred to the buyer in future or subject to the fulfillment of certain conditions it is known as an agreement to sell. Sale and agreement to sell Meaning Differences. Table of Contents What is Sale? What is Agreement to Sell?
Sale and Agreement to Sell
Sale In sale of contract, goods are immediately transferred to the buyer. Agreement to Sell In this case, goods sold are to be transferred at a certain date in future. Sale This contract takes place over the existing specific goods. Agreement to Sell The goods may exist or may the contract have been made over contingent goods.
An executed contract is one which is immediately performed after being entered into whereas an executory contract is one which is to be performed in future. Transfer of ownership : In case of sale, the transfer of ownership from seller to the buyer takes place at the time to contract. In case of agreement to sell, the transfer of ownership is to take place at a future time or subject to the fulfillment of a condition.
Difference Between Sale and Agreement to sell
Sale and Agreement to Sell Business Law. Sale and Agreement to Sell:. A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the purchaser at a cost. There may be an agreement of offer between one part-owner and another. A contract of sale may be absolute or conditional. Where under a contract of sale the property in the goods is transferred from the seller to the purchaser, the agreement is sale, however where the transfer of the property in the goods is to take place at a future time or subject to some condition thereafter to be complete, the contract is called an agreement to sell.
However, section 8 of the aforementioned law deals with the goods that flow before the sale, but under the sale agreement, so that this section again highlights the goods that, through no fault of the seller or buyer, are damaged or corrupted. It is therefore also a sale agreement. If the buyer does not pay the price, the seller can sue him on the price, but cannot resell the goods. Risk of loss: if the goods are lost in the sale, the buyer bears the damage even if the possession of the goods belongs to the seller. The seller may keep the goods, as they still own the goods. The seller may recover the goods, sue for damages and resell the goods, but cannot sue the intended buyer for price forfeiture. An essential element of the sales contract is: purchase in the purchase contract, the goods are immediately transferred to the buyer.
Under Sale, ownership passes immediately at the time when the contract is made whereas under Agreement to Sell, passing of ownership is postponed i.e the.