Sale vs Agreement to Sell š°ļø
This is the most important distinction in the Sale of Goods Act. Exam questions love this topic!
The Key Difference š
Sale: Ownership (Property in Goods) passes to the buyer immediately. Agreement to Sell: Ownership passes later (on a future date or after some condition).
Example 1 (Sale): You buy a pen from a shop. You pay ā¹10. You take the pen. ā Ownership passed immediately. This is a Sale.
Example 2 (Agreement to Sell): You order a laptop online on 1st Jan. Payment done. Delivery on 5th Jan. ā From 1st to 5th, it is an Agreement to Sell. ā On 5th (when delivered), it becomes a Sale.
Detailed Comparison Table š
| Aspect | Sale | Agreement to Sell |
|---|---|---|
| Ownership | Passes immediately. | Passes in future. |
| Nature | Executed Contract (Done). | Executory Contract (To be done). |
| Risk | Buyer bears risk (If goods destroyed, Buyer's loss). | Seller bears risk. |
| If Seller sells to 3rd party | 3rd party gets NO title. Buyer can recover goods. | Buyer can only claim damages (money), not goods. |
| Breach | Buyer can sue for Recovery of Price paid. | Buyer can sue for Damages only. |
| Insolvency of Seller | Buyer can claim goods from Official Receiver. | Buyer stands in queue with other creditors. |
In legal language, "Property in Goods" means Ownership (not physical possession). Don't confuse with "Property" (like House/Land). Here it means "Owning rights".
Quiz Time! šÆ
Test Your Knowledge
Question 1 of 5
1. In a 'Sale', ownership passes:
š” Final Wisdom: "Think of it like a wedding. 'Agreement to Sell' is the engagement (promise for future). 'Sale' is the actual marriage (done deal)!" š
Next up: Types of Goods - Existing, Future, Contingent! š¦