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 1930 defines sale and Agreement to sell as : 


(1) A contract of sale of goods is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. There may be a contract of sale between one part-owner and another.

(2) A contract of sale may be absolute or conditional

(3) Where under a contract of sale the property in the goods in transferred from the seller to the buyer, the contract is called a sale, but 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 fulfilled, the contract is called an agreement to sell.

(4) An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred.

Main Differences between Sale and Agreement to Sell 

No
                          Sale
Agreement to Sell  

1

Meaning: where the Property immediately transferred from seller to buyer, it is called ‘Sale’.   

Meaning:  where the transfer of property in goods is to take place in future, from seller to buyer is called ‘Agreement to Sell’.  


2

Definition: Sale can be defined as “transfer of ownership in the goods by the seller to buyer in exchange of price paid or promised or partly paid and partly promised.  

Definition: in case where the seller agrees with the buyer to transfer the title of ownership on a future date upon satisfying certain condition is called as ‘Agreement to Sale’.  




3

Example: ‘X’ sold 10 bags of Wheat to ‘Y’ against payment of Rs. 3,000. 

Example:X’ agrees to sell 10 bags of wheat to ‘Y’ for Rs.3,000 after getting the stock.


4

In contract of sale property in goods transfers from seller to buyer immediately

In agreement to sell, property in goods does not transfer immediately


  

5

Contract of sale is an executed contract

Agreement to Sell is an executory contract


6

It creates right in rem 

It creates rights in personam

7

The seller can sue the buyer for case of breach of contract.

The seller can sue the buyer only for damages but not for the price.

8

Sale is liable for the Sale Tax.

Agreement to sale is not liable for the Sale Tax.

9

Seller has no right of resale.

Seller has right of resale.
 

10

If the goods are destroyed, the loss is borne by the buyer even though the goods are in the possession of the seller.

The loss fall on the seller even though the goods are in the possession of the buyer.  




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