Sale and Agreement to Sale are two legal concepts related to the transfer of ownership of goods or property. The main differences between the two are as follows:
- Transfer of Ownership: The primary difference between sale and agreement to sell is the transfer of ownership. In a sale, ownership of the property is transferred immediately from the seller to the buyer. In contrast, in an agreement to sell, ownership is transferred at a later date, typically when certain conditions are met.
- Risk: In a sale, the risk of loss or damage to the property is transferred from the seller to the buyer immediately upon the sale. In an agreement to sell, the risk remains with the seller until ownership is transferred.
- Nature of Contract: A sale is a completed contract, whereas an agreement to sell is an executory contract. This means that in a sale, all the terms of the contract have been fulfilled, and the transaction is complete. In an agreement to sell, some terms of the contract are yet to be fulfilled, and the transaction is not complete until ownership is transferred.
- Legal Rights: In a sale, the buyer has the legal right to use the property and sell it further to a third party. In contrast, in an agreement to sell, the buyer only has a contractual right to obtain ownership of the property at a later date.
In summary, a sale is a completed transaction, with ownership and risk transferred immediately, whereas an agreement to sell is an executory contract, with ownership and risk transferred at a later date.