The terms like sale, contract, and agreement of sale are close to one another and that is why ordinary people may need a clearer idea about difference between sale and agreement sale . For a better understanding of these terms, let’s have a close look at these terms first:
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Under Section 54 of Transfer of property, the experts define the term ‘sale’ as “a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised.” It can also be defined as ‘the ownership of a property is handed over to another person in exchange for a certain price. Such a transfer can be ensured irrespective of the price fully or partially paid to the sellers.
As per section 2(e) of the Contract Act states, the experts define the terms as “a promise or set of promises forming a consideration for each other” is an agreement. It can also be defined as a proceeding when two people/parties agree on something in exchange for consideration (or money), and it becomes an agreement.
Agreement to Sell
In the light of Section 4 (3) of the Sale of Goods Act 1930, the experts define this term as “Where under an agreement of sale the goods or assets in the goods is moved from the seller to the buyer, the agreement is called a sale, but where the transmission of the possessions in the goods is to take place at a future time or subject to some disorder thereafter to be fulfilled, the contract is called an agreement to sell.” The experts also term this as a promise or legal procedure between the parties regarding a future transaction.
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Difference Between The Terms ‘Contract of Sale’ and ‘Agreement to Sell’
Generally, common people assume the alteration between agreement and contract to be nothing and that the terms are synonymous. The experts say that a contract of sale is a wider version where two people or parties agree to exchange goods in return for a consideration, monetary considerations in particular. People should feel free to speak to expert civil lawyer in Kolkata or legal professionals to get a clear picture of these terms.
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