Explain the difference between Sale and Agreement to sell under the Sale of Goods Act, 1930.

The differences between the sale and agreement to sell is as follows: Basis of difference Sale Agreement to sell Transfer of property The property in the goods passes to the buyer immediately. Property in the goods passes to the buyer on future date or on fulfilment of some condition. Nature of contract It is an executed contract. i.e. contract for which consideration has been paid. It is an executory contract. i.e. contract for which consideration is to be paid at a future date. Remedies for breach The seller can sue the buyer for the price of the goods because of the passing of the property therein to the buyer. The aggrieved party can sue for damages only and not for the price, unless the price was payable at a stated date. Liability of parties A subsequent loss or destruction of the goods is the liability of the buyer. Such loss or destruction is the liability of the seller. Burden of risk Risk of loss is that of buyer since risk follows ownership. Risk of loss is that of seller. Nature of rights Creates Jus in rem Creates Jus in personam Right of resale The seller cannot resell the goods. The seller may sell the goods since ownership is with the seller.