In a ‘sale’ the property in goods passes to the buyer immediately at the time of making the contract. In other words, a sale implies immediate conveyance of property so that the seller ceases to be the owner of the goods and the buyer becomes the owner thereof. It creates a just in rem, i.e., gives right to the buyer to enjoy goods as against the whole world.
In ‘an agreement to sell’ there is no transfer of property to the buyer at the time of the contract. The conveyance of property takes place later so that the seller continues to be the owner until
the agreement to sell becomes a sale either by the expiry of certain time or the fulfillment of some condition. Thus where A agrees to buy 50 kg wheat from B and the wheat is yet to be weighed, the transaction is an agreement to sell because as per Section 22, in such a case the property does not pass to the buyer till the goods are weighed and the buyer has notice thereof.
In ‘an agreement to sell’ there is no transfer of property to the buyer at the time of the contract. The conveyance of property takes place later so that the seller continues to be the owner until
the agreement to sell becomes a sale either by the expiry of certain time or the fulfillment of some condition. Thus where A agrees to buy 50 kg wheat from B and the wheat is yet to be weighed, the transaction is an agreement to sell because as per Section 22, in such a case the property does not pass to the buyer till the goods are weighed and the buyer has notice thereof.
The transaction becomes a sale and the property in the goods passes to the buyer after the wheat is weighed and the buyer has notice thereof. An agreement to sell creates a jus in person, that is, it gives a right to either buyer or seller against the other for any default in fulfilling his part of the agreement. It is worth nothing that this is the basic point of distinction between a ‘sale’ and ‘an agreement to sell.’
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