1. 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 [Sec 2(h)] of Indian Contract Act 1872 defines
“A contract is an agreement enforceable by law”.
According to Salmond
“A contract is an agreement creating and defining obligation between
the parties.”
Difference between Sale and Agreement to Sell
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.
In an Agreement to Sell : The transfer of property of the goods is to take
place at a future time or subject to certain conditions to be fulfilled.
2. Type of goods
Sale : A sale can only be in case of existing and specific goods only.
In an Agreement to Sell : An agreement to sell is mostly in case of future
and contingent goods ( associated or dependent ). Although it may refer
to uncertain existing goods.
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.