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Difference Between Sale And Agreement To Sell

  1. Under Sale, ownership passes immediately at the time when the contract is made whereas under�Agreement to Sell, passing of ownership is postponed i.e the transfer takes place at a future time or transfer is subject to some conditions.
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  2. In case of�sale, the buyer becomes the owner immediately whereas, in case of an�agreement to sell, the seller remains the owner until that agreement is not converted into a sale.
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  3. Sale�is executed contact i.e when both the parties perform their part whereas�agreement to sell�is an executory contract i.e which is to perform in the future.
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  4. Sale�gives right in rem i.e against the whole world whereas in�agreement to sell�it gives right in personal i.e between the parties only.
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  5. Sale�is always of existing property whereas�agreement to sell�can be of existing property or future property.
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  6. In�sale, if after the contract of sale any loss is caused to the goods then the risk is to be borne by the buyer. (s.26) whereas in case of�an agreement to sell, the seller is still the owner of goods so if there is any loss then that loss is to be borne by the seller only. (s.26)
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  7. in case of�sale, if the buyer refuses to pay the money then the unpaid seller may have the right to recover money u/s 46 whereas in case of an�agreement to sell, if the buyer refuses to accept and pay then the seller may sue him for damages for non - acceptance.

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