Question 3 (b)
Sale and agreement to sell
6 marks
- Time to write
- About 12 minutes
From an older CBCS paper
Question
Question 3 (b) · 6 marksDistinguish between ‘Sale’ and ‘An agreement to sell’.
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- Distinguish betweenSet the differences out in a table, basis by basis, not as two separate essays.
Write it in this order
- Read; underline the asks; jot your points 1 min
- 1 Sale and agreement to sell defined 2 marks 3 min
- 2 Differences 4 marks 7 min
- Check: every ask answered, key terms underlined 1 min
Short on time? Trim steps 1 and 2 evenly rather than skip one: each is capped at its own marks.
Try it first. About 12 minutes for 6 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
A contract of sale under section 4 of the Sale of Goods Act, 1930 takes one of two forms, depending on when the property in the goods passes to the buyer.
1The sofa is paid for and ribboned—when it burns that night, the loss is the buyer's.
SaleProperty passes to the buyer at once; loss falls on the buyer.
2The chair is still under the carpenter's hammer—until it is finished and handed over, it burns as the seller's.
Agreement to sellProperty passes at a future time or on fulfilment of a condition; loss falls on the seller.
Sale. The property in the goods passes from the seller to the buyer at once.
Agreement to sell. The property is to pass at a future date or once some condition is fulfilled; when that time arrives or the condition is met, the agreement becomes a sale.
Differences (first three rows; the rest):
| Basis | Sale | Agreement to sell |
|---|---|---|
| Transfer of property | Immediate | In future, or on a condition |
| Nature of contract | Executed | Executory |
| Seller's remedy on the buyer's default | Suit for the price | Suit for damages, unless the price is payable on a fixed day, when he may sue for the price |
| Risk of loss | On the buyer, as the risk goes with ownership | On the seller |
| Resale by the seller | The seller cannot resell the goods | The seller may sell the goods, as he still owns them |
| Seller's insolvency | The official assignee cannot take the goods; he can only recover the price from the buyer | The official assignee takes control of the goods; the price cannot be recovered |
Where the 6 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Sale and agreement to sell defined | 2 |
| 2 | Differences | 4 |
| Total | 6 |
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