7 Most Important Differences between Sale and Agreement to Sell

7 Most Important Differences between Sale and Agreement to Sell are listed below:


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1. The property or ownership in the goods immediately passes from seller to buyer.

2. Sale is always of existing, specific or ascertained goods.


3. Sale is an executed contract

4. The goods belong to the buyer even if they remain in the possession of seller. In case of loss or damage, the buyer will suffer the loss.

5. If the buyer fails to pay the price, the seller can sue him for price, but cannot resell the goods.

6. If buyer gets insolvent before he pays the price, the seller cannot retain the goods. He must return the goods to the buyer’s Official Receiver and shall be entitled only to a rateable dividend.


7. If seller gets insolvent, the buyer can recover goods from seller’s Official Receiver.

Agreement to Sell:

1. The property in goods transfers on some future date or subject to fulfillment of some conditions. The seller continues to be the owner of goods.

2. An agreement to sell may relate to existing goods, unascertained goods and mostly to future or contingent goods.

3. It is an executor or future contract


4. The goods belong to the seller and he will suffer the loss if goods are destroyed, even if these are in the possession of the buyer.

5. The seller can recover the goods, can sue for damages and can resell the goods, but cannot sue the intended buyer for recovery of price.

6. The seller can retain the goods as he is still the owner of goods. In case goods are with Official Receiver of the buyer, he can recover goods or full price of the goods.

7. If the buyer has already paid the price, buyer cannot recover the goods. He can only claim rateable dividend as creditor.


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