Contract of Sale of Goods

A contract of sale of goods is a contract whereby the seller transfer or agrees to transfer the property in goods to the buyer for a price.

Contract of Sale of Goods

Sale

Agreement to Sell

Sale:
When under the contract of sale the goods are transferred from the seller to the buyer, the contract is called a Sale.

Agreement to sell:
If the transfer of the goods will take place at a future time or subject to some conditions thereafter to be filled the contract is called an Agreement to sell An Agreement to sell becomes a sale when the time or the conditions, subject to which the property in goods is to be transferred, are fulfilled.

Differentiation between Sale and Agreement to Sell

1. Transfer: In a sale, Goods are passes from the buyer immediately so that the seller is no more the owner of the goods sold. In an agreement to sell, the transfer of goods is to take place at a future time or certain conditions to be fulfilled. 2. Risk of Loss: In a sale, if goods are destroyed, the loss falls to the buyer even though the goods are in the possession of the seller. In an agreement to sell, if goods are destroyed the loss falls on the seller.