Question 5 (a) part iii

Sale and agreement to sell distinguished

4 marks

Time to write: About 8 minutes

From an older CBCS paper

Question

Question 5 (a) part iii · 4 marks

Of the following, write the difference between any two

A 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

8 minfor 4 marks

Read from the question

any twoThe paper asks for any 2, and this is one of them. Only 2 are marked: a third earns nothing.
difference betweenSet the differences out in a table, basis by basis, not as two separate essays.

What the paper leaves open

The paper asks for any two of the three pairs, 8 marks in all; each pair is a part of 4 marks here (inferred).

Write it in this order

Read; underline the asks; jot your points 1 min
1 Meaning of sale and agreement to sell 1½ marks 3 min
2 Points of difference 2½ marks 4 min

Easy marks

Step 1 opens with the meaning: a one-line definition, the quickest mark in it.

Short on time? Trim steps 1 and 2 evenly rather than skip one: each is capped at its own marks.

Try it first. About 8 minutes for 4 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.

(iii) A sale and an agreement to sell. The difference lies in when ownership moves. If the contract itself makes the buyer the owner there and then, it is a sale; if ownership is to move later, on a date or once some condition is met, it is an agreement to sell, which turns into a sale when that date arrives or the condition is satisfied. Buying a phone across the counter is a sale; ordering a car that the dealer will register in your name only after it arrives from the factory is an agreement to sell.

Picture itSale and agreement to sell distinguished

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.

Basis	Sale	Agreement to sell
What the seller can sue for if the buyer defaults	The price, because the goods are already the buyer's	Usually damages only; the price only if it was payable on a fixed day
Who bears loss if the goods perish	The buyer, as owner (risk prima facie follows ownership)	The seller, who is still the owner
Ownership	Moves to the buyer at once	Moves later, on a date or a condition
Stage of the contract	Executed: the transfer is complete	Executory: something remains to be done

Where the 4 marks sit

#	Component	Marks
1	Meaning of sale and agreement to sell	1.5
2	Points of difference	2.5
	Total	4

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