Difference between the sale and Agreement to sell

In Sale, the transfer of ownership passes from seller to buyer immediately. It is an executed contract. Sale can be only in specific or existing goods. If the goods are destroyed, the loss falls on the buyer even though the goods are in the procession of the seller. In case of breach by the seller, the buyer has the legal right to obtain the possession of the goods. In case of breach by the buyer, the seller has the legal right to sue the buyer for recovery of the price of goods. In case of a sale, the seller has no right to resell the goods. If the buyer becomes insolvent, the official assignee/ official receiver shall have a right over the goods. If the seller becomes insolvent, the official assignee/ official receiver shall have no right over the goods. A sale is a contract plus conveyance, and creates jus in rem i.e., gives a right to the buyer to enjoy the goods as against the world at large including the seller.

WHEREAS;

The transfer of ownership passes from seller to buyer subsequent to the formation of the agreement to sell. It is an executor contract. An agreement to sell is mostly in case of future or contingent goods. If the goods are destroyed, the loss falls on the seller even though the goods are in the procession of the buyer. In case of breach by seller, the buyer’s remedy is to claim damages for nonperformance of the contract. In case of breach by the buyer, the seller cannot sue the buyer for recovery of the price of goods. His right is limited to claim damages. In case of an agreement to sell, the seller can resell the goods to any other person. If the buyer becomes insolvent, the official assignee/ official receiver shall have no right over the goods. If the seller becomes insolvent, the official assignee/ official receiver shall have a right over the goods. An agreement to sell is merely a contract, pure and simple, and creates jus in person-am i.e., gives a right to the buyer against to sue for damages.