Agreement to Sell

Sociology | Mercantile Law | International Law | International Relations

We have studied that, sale is a contract in which there occurs immediate transfer of possession of goods for a price; on the other hand, Section#4 (3) of the same Act introduces us with ‘Agreement to Sell’. It states that, “An agreement to sell is an agreement whereby the transfer of the property in goods is to take place at a future time or subject to some condition thereafter to be fulfilled.”

Barring the presence of two parties, fixation of price and movable property as essentials of the agreement to sell; it is the fourth requisite that differs from that of ‘contract of sale’. Here, the transfer of goods has not been accomplished but it is due to a certain date in future or is contingent with the fulfillment of some condition.