Sale of Goods Act, 1930
Sale under the Sale of Goods Act, 1930:
- Sale refers to a contract where ownership of goods is transferred from the seller to the buyer for a price.
- It involves an immediate transfer of property, and the buyer becomes the owner of the goods.
Agreement to Sell under the Sale of Goods Act, 1930:
- Agreement to sell is a contract where the transfer of ownership of goods is to take place at a future time or upon the occurrence of a specified event.
- Ownership of the goods remains with the seller until the agreed-upon conditions are fulfilled.
Differences between Sale and Agreement to Sell:
Sale | Agreement to Sell | |
Transfer of Ownership | Immediate transfer of ownership from seller to buyer | Transfer of ownership is contingent upon future conditions being fulfilled |
Risk of Loss | Once ownership is transferred, risk of loss or damage passes to the buyer | Risk of loss or damage remains with the seller until ownership is transferred |
Remedies | Non-defaulting party can sue for damages or specific performance | Non-defaulting party can only sue for damages, not specific performance |
Insolvency | Buyer’s rights to the goods are protected even if the seller becomes insolvent after the sale | Buyer’s rights may be affected if the seller becomes insolvent before ownership is transferred |