Question

Distinguish between sale and agreement to sell.

Answer 1

Basis for Comparison	Sale	Agreement to Sell
1. Ownership	The property (ownership or title) in the goods passes from the seller to the buyer immediately.	The property (ownership or title) in the goods has to pass at a future time or after the fulfillment of certain conditions.
2. Risk of Loss	Where the goods sold under the contract of sale are destroyed, the loss falls fully on the buyer as the owner has already passed.	Where the goods under the agreement to sell are destroyed, the loss falls fully on the seller as the ownership is still vested with the seller.
3. Consequences of violating the contract	Where the buyer fails to pay the price, the seller cannot seize the goods.	Where the buyer violates the contract, the seller can repossess the goods from the former.
4. Nature of contract	It is an executed contract.	It is an executory contract, i.e., a contract yet to be performed.
5. Insolvency of the Buyer	In a sale, if a buyer becomes insolvent before he pays for the goods even though the goods sold are under the possession of the seller, the latter has to return them to the Official Activate Receiver.	If the buyer becomes insolvent before the payment of the price, the seller can retain the goods if they are under his possession.