SECTION 4(1) “A CONTRACT OF SALE OF GOODS IS A

CONTRACT WHEREBY THE SELLER TRANSFERS OR AGREE TO TRANSFER THE PROPERTY IN GOODS TO THE BUYER FOR A CERTAIN PRICE’’

SALE SECTION 4(3),”WHEN THE

OWNERSHIP OF GOODS IS TRANSFERRED FROM SELLER TO THE BUYER UNDER A CONTRACT OF SALE,A SALE IS SAID TO HAVE BEEN MADE

WHEN TRANSFER OF OWNERSHIP OF GOODS UNDER THE CONTRACT OF SALE IS TAKE PLACE AT A FUTURE DATE OR ON FULFILLMENT OF A CONDTION, IT IS A CALLED AGREEMENT TO SELL

7

S.No

BASIS SALE AGREEMENT TO SELL

1. Transfer of ownership

Transfer of ownership of goods takes place immediately.

Transfer of ownership of goods takes place in future times.

2. Executed or Executory

It is an executed contract.

It is an executory contract because something remains to happen.

3. Conveyance of Property

Buyer gets the right to enjoy the goods against whole of the world. It creates jus in rem(Right against property)

Buyer does not get such right to enjoy the goods. It only creates jus in personam (Right against person)

8

4. Transfer of Risk

Transfer of risk* of loss of goods takes place immediately as the ownership is been transferred. As a result in case of destruction of goods, the loss shall be beared by the buyer.

(Risk*-Risk follows ownership)

Transfer of risk of loss of goods does not takes place because the ownership is not transferred. As a result, in case of destruction of goods the loss shall be borne by the seller.

SALE V/S BARTER SALE V/S GIFT SALE V/S BAILMENT SALE V/S MORTGAGE/PLEDGE CASE STUDY LEE V/S GRIFFEN ROBINSON V/S GREAVES

MS SHALINI KAPOOR

ASSISTANT PROFESSOR IN

COMMERCE DEPARTMENT