Differences between “Sale” and “Agreement to Sell” are as follows:
1. Transfer of Ownership:
In an agreement to sell, the property in the goods remains with the seller until the agreement to sell becomes a sale by the expiry of the agreed time or the fulfilment of the agreed conditions.
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ADVERTISEMENTS:
Till this happens the goods can be resold by the seller or attached in execution of a decree against him. In case of a sale the property passes to the buyer and the goods cannot be seized in execution of a degree against the seller.
2. Transfer of Risk:
Where the transaction amounts to a sale, the goods belong to the buyer and he has to bear the loss if the goods are subsequently damaged or destroyed.—Sec. 26.
3. Remedial measures:
In the case of a sale, the unpaid seller has certain reliefs available, e.g., lien, stoppage in transit, etc. In case of an agreement to sell, the seller’s remedy for breach of contract by the buyers, is a suit for damages.
4. Nature of contract:
‘Sale’ is an ‘executed contract’ because in a sale, consideration moves simultaneous with the promises of both parties. Also, in a sale the property of specific goods is transferred to the buyer immediately. But an ‘agreement to sell’ is an ‘executor contract’ because the consideration is to move at a future date. Also the property of specific goods passes to the buyer later.