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Thursday, 11 August 2011

Write a note on 1. Contract of sale 2. An agreement to sell or Difference between contract of sale and agreement to sell

CONTRACT OF SALE :-
It is defined in the following words, " A contract whereby the seller transfers or agrees to transfer the property or the goods to the buyer for a price."

There are two parts of this definition :


1. An actual Sale :-
An actual sale property in goods transfers from sellers to buyers under the contract of sale.

Example :- Suppose Miss. Rina enters into contract of sale of horse in the hand of Mr. Guru against Rs. 30,000. Mr. Guru pays Rs. 30,000 to Miss. Rina and she delivers her horse to Mr. Guru. It is a sale.


2. An Agreement to Sell :-
The contract is called agreement to sell when transfer of property takes place at a future time subject to some condition to be fulfilled.

Example :- Suppose Miss. Poonam agrees with Mr. Mirza to sell him her house against Rs. 30 lac after the construction next year.



DIFFERENCE BETWEEN SALE AND AGREEMENT TO SELL :-
We can analyses the difference by the following facts :

1. Transfer of Goods :-

Sale : In case of sale property is transfers from seller to buyer.

Agreement to sell : In case of agreement only promise is made to transfer the goods.



2. Nature of Performance :-

Sale : A sale is a contract which is being performed.

Agreement to sell : An agreement to sell is a contract which is to be performed.



3. Rights of Buyer and Seller :-

Sale : Goods become the property of the buyer in case of sale.

Agreement to sell : Goods remain the property of the seller in case of agreement.



4. Insolvency of Buyer :-

Sale : In a sale case seller can use his right of lien or stoppage.

Agreement to sell : In case of agreement seller can refuse to deliver the goods if price is not paid.



5. Buyer's Default :-

Sale : In case of sale, a seller can claim for the price of goods.

Agreement to sell : In case an agreement the seller can claim only for damages.



6. Seller's Insolvency :-

Sale : In case of sale a buyer has no risk.

Agreement to sell : In case of agreement a buyer can claim only dividend.



7. Seller's Default :-

Sale : In case of sale the buyer has a personal remedy.

Agreement to sell : In case of agreement the buyer can claim only for damages.



8. Responsibility of Loss :-

Sale : In case of sale the responsibility of loss by accident falls on the buyers.

Agreement to sell : In case an agreement to sell responsibility of loss falls on the sellers.



2 comments:

Anonymous,  13 May 2013 at 00:50  

Thanku i have a doubt can u give ur number

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