Difference Between Sale and Agreement To Sell
Difference Between Sale and Agreement To Sell
Difference Between Sale and Agreement To Sell
Contract:
It is an agreement made between two or more parties which the law will
enforce.
According to Salmond
1. Transfer of property
Sale : The property of goods passes from the seller to the buyer
immediately. So the seller is no more owner of the goods sold.
2. Type of goods
Sale : A sale can only be in case of existing and specific goods only.
3. Risk of loss
Sale : In a sale if the goods are destroyed , the loss falls on the buyer
even though the goods are in the posssession of the seller.
In an Agreement to Sell : In an Agreement to Sell if the goods are
destroyed the loss falls on the seller even though the goods are in the
posssession of the buyer.
Sale : In a sale the buyer fails to pay the price of goods (or) if there is a
breach of contract by the buyer the seller can sue for the price even
though the goods are still in his possession.
5. Right to re-sell
Sale : The sale of contract plus conveyance and creates ‘Jus in rem’ i.e.,
gives right to the buyer to enjoy the goods as against the word and large
including the seller.
7. Insolvency of buyer
Sale : In a sale if the buyer becomes insolvent before he pays for goods,
the seller in the absence of the lien over the goods, must return them to
the official receiver or assignee. He can only claim the reteable dividend
for the price of the goods.
In an Agreement to Sell : In an Agreement to Sell , If the buyer becomes
insolvent and has not yet paid the price the seller is not bound to part
with the goods until he is paid for.
Sale : In a sale the seller becomes insolvent, the buyer being the owner is
entitled to recover the goods from the official receiver of the assignee.
In an Agreement to Sell : If the buyer who has paid the price, finds that
the seller has become insolvent he can only claim a reteable dividend and
not the goods because property in them has not yet passed to him.
A sale creates jus-in-ram (right against the whole world). But agreement to
sell create jus-in-personam (right against an individual)
In case of sale risk passes along with the property, in case of agreement to
sell as the property is not transferred, risk is also not transferred.