DIFFERENTIAL ANALYSIS
CONTRACT OF SALE AND
AGREEMENT TO SALE
No Sale
1
Meaning: where the Property
immediately transferred from seller
to buyer, it is called ‘Sale’.
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.
3 Example: ‘X’ sold 10 bags of
Wheat to ‘Y’ against payment of Rs. of wheat to ‘Y’ for Rs.3,000 after
3,000.
4 In contract of sale property in
goods transfers from seller to
buyer immediately
5 Contract of sale is an executed
contract
Agreement to Sell
Meaning: where the transfer of
property in goods is to take place in
future, from seller to buyer is called
‘Agreement to Sell’.
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’.
Example: ‘X’ agrees to sell 10 bags
gettingthe stock.
In agreement to sell, property in
goods does not transfer immediately
Agreement to Sell is an executory
contract
6 It creates right in rem It creates rights in personal

7 The seller can sue the buyer for The seller can sue the buyer only for
case of breach of contract. 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 The loss fall on the seller even though
is borne by the buyer even though the goods are in the possession of the
the goods are in the possession of buyer.
the seller.