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Difference Between Sale And Agreement To Sell

  1. Under Sale, ownership passes immediately at the time when the contract is made whereas under Agreement to Sell, passing of ownership is postponed i.e the transfer takes place at a future time or transfer is subject to some conditions.
  2. In case of sale, the buyer becomes the owner immediately whereas, in case of an agreement to sell, the seller remains the owner until that agreement is not converted into a sale.
  3. Sale is executed contact i.e when both the parties perform their part whereas agreement to sell is an executory contract i.e which is to perform in the future.
  4. Sale gives right in rem i.e against the whole world whereas in agreement to sell it gives right in personal i.e between the parties only.
  5. Sale is always of existing property whereas agreement to sell can be of existing property or future property.
  6. In sale, if after the contract of sale any loss is caused to the goods then the risk is to be borne by the buyer. (s.26) whereas in case of an agreement to sell, the seller is still the owner of goods so if there is any loss then that loss is to be borne by the seller only. (s.26)
  7. in case of sale, if the buyer refuses to pay the money then the unpaid seller may have the right to recover money u/s 46 whereas in case of an agreement to sell, if the buyer refuses to accept and pay then the seller may sue him for damages for non - acceptance.

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