Scribd Logo
Upload

Welcome to Scribd!

  • 19 views

    Business Law Sale and Agreement

    Uploaded by

    Kishore kumar
    The document distinguishes between a sale and an agreement to sell. A sale transfers property immediately from seller to buyer, while an agreement to sell transfers property at a future time or upon conditions. A sale puts risk of loss and ability to sue for price on the buyer, while an agreement to sell puts risk of loss and ability to only sue for damages on the seller.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Business Law Sale and Agreement

    Uploaded by

    Kishore kumar
    19 views2 pages
    The document distinguishes between a sale and an agreement to sell. A sale transfers property immediately from seller to buyer, while an agreement to sell transfers property at a future time or upon conditions. A sale puts risk of loss and ability to sue for price on the buyer, while an agreement to sell puts risk of loss and ability to only sue for damages on the seller.

    Original Title

    Business Law sale and agreement

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document distinguishes between a sale and an agreement to sell. A sale transfers property immediately from seller to buyer, while an agreement to sell transfers property at a future time or upon conditions. A sale puts risk of loss and ability to sue for price on the buyer, while an agreement to sell puts risk of loss and ability to only sue for damages on the seller.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    19 views2 pages

    Business Law Sale and Agreement

    Uploaded by

    Kishore kumar
    The document distinguishes between a sale and an agreement to sell. A sale transfers property immediately from seller to buyer, while an agreement to sell transfers property at a future time or upon conditions. A sale puts risk of loss and ability to sue for price on the buyer, while an agreement to sell puts risk of loss and ability to only sue for damages on the seller.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    SaleandAgreementtto

    to Sell-distinction
    1. Transfer of property. In a sale, the property in the goods passes from the seller to the buyer
    Lnnediately so that the seller is no more thc owncr of the goods sold. In an
    agreement to sell, the
    transfer of property in thegoods is to take place at a future timne or subject to certain conditions
    tnhe fulfilled. In this sense, a sale is an exccuted contract and an agreement to
    sell is an executory
    contract.
    , Tvpe of goods. A Salecan only be in case of existingand specificgoods only. An agreement to sell
    is mostly in case of future and contingent goods although in some cases it may refer to
    unascertainedIexisting goods.
    , Risk of loss. In asale, if the goods are destroyed, the loss falls on the buyer even though the
    goods are in the possession of the seller. In an agreement to sell, if the goods are destroyed, the
    Ioss falls on the seller, even though the goods are in the possession of the buyer.
    4. Consequences of breach. In a sale, if the buyer fails to pay the price of the goods or if there is
    a breach of contract by the buyer, the seller can sue for the price even though the goods are still
    in his possession. In an agreement to sell if there is a breach of contract by the buyer, the seller
    can onlysue for damages and not for the price even though the goods are in the possession of the
    buyer.
    6 Right to re-sell. In a sale, the seller cannot re-sell the goods (except in certain cases, as for
    example, a sale by a seller in possession after sale under Sec. 30, or a sale by an unpaid seller
    under Sec. 54). If he does so the subsequent buyer does not acquire title to the goods. In an
    agreement to sell, in case of re-sale, the buyer, who takes the goods for consideration and without
    notice of the prior agreement, gets a good title. In such acase, the original buyer can only sue the
    seller for damages.
    6. General and particular property. A sale is a contract plus conveyance, and creates jus in rem,
    ie, gives right to the buyer to enjoy the goods as against the world at large including the seller. An
    agreement to sell is merely a contract, pure and simple, and creates jus in personam, i.e., gives a
    right to the buyer against the seller to sue for damages.
    1. Insolvency of buyer. In a sale, if the buyer becomes insolvent before he pays for the goods, the
    seller, in the absence of a lien over the goods, must return them to the Official Receiver or
    224 BUSINESS LAW | THE SALEOF GoODS ACT, 1930

    Assignee. He can only claim arateabledividend for the price of thegoods. In an agreement to sell.
    if the buyer becomes insolvent and has not yet paid the price, the seller is not bound to part with
    the goods until he is paid for.
    8. Insolvency of seller. In a sale, if the seller becomes insolvent, the buyer, being the owner, is
    entitled to recover the goods from the Official Receiver or Assignee. In an agreement to sell, ifthe
    buyer, who has paid the price, finds that the seller has become insolvent, he can only claim a
    rateable dividend and not the goods because property in them has not yet passed to him.

    You might also like