Sale of Goods Act, 1930MCQQuestion 5806 of 6
All Questions

What is the difference between a 'sale' and an 'agreement to sell' under the Sale of Goods Act, 1930?

Options

AA sale is a transfer of ownership, while an agreement to sell is a transfer of possession
BA sale is a transfer of possession, while an agreement to sell is a transfer of ownership
CA sale is a transfer of ownership, while an agreement to sell is a contract to transfer ownership in the future
DA sale is a contract to transfer ownership in the future, while an agreement to sell is a transfer of ownership
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Correct Answer

✅ Option C — A sale is a transfer of ownership, while an agreement to sell is a contract to transfer ownership in the future

All Options:

  • AA sale is a transfer of ownership, while an agreement to sell is a transfer of possession
  • BA sale is a transfer of possession, while an agreement to sell is a transfer of ownership
  • CA sale is a transfer of ownership, while an agreement to sell is a contract to transfer ownership in the future ✓
  • DA sale is a contract to transfer ownership in the future, while an agreement to sell is a transfer of ownership

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Detailed Solution & Explanation

Section 4 of the Sale of Goods Act, 1930 defines a 'sale' as a transfer of ownership of goods from one person to another for a price. On the other hand, an 'agreement to sell' is a contract to transfer ownership of goods in the future. The key difference is that in a sale, the ownership of the goods is transferred immediately, while in an agreement to sell, the ownership is transferred at a future date.
This solution has been verified by multiple AI reviewers for accuracy.

Key Concepts to Understand

Sale of Goods

A contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price (Section 4, Sale of Goods Act, 1930). In a 'Sale', property in goods passes immediately; in an 'Agreement to Sell', it passes in future.

More Questions from Sale of Goods Act, 1930

Which of the following is a condition implied by law in a contract of sale?

What is the effect of a contract of sale being conditional upon a condition subsequent?

Explain the provisions of the Sale of Goods Act, 1930 related to the implied warranties in a contract of sale. What are the different types of implied warranties and what are their implications on the sellers and buyers?

What are the legal provisions related to the transfer of ownership of goods in a contract of sale under the Sale of Goods Act, 1930? What are the different modes of transfer of ownership and what are their implications on the sellers and buyers?

Discuss the concept of 'unsold goods' under the Sale of Goods Act, 1930. What are the legal implications of unsold goods on the sellers and buyers? What are the different scenarios in which the goods may remain unsold?

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