According to Sec 4(1) of sale of goods act, “A contract of sale of goods
is a contract whereby the seller transfers or agrees to transfer the
property in goods to the buyer for a price”.
Agreement to Sale
The sale of Goods Act defines it as, “where the transfer of the property in the
goods is to take place at a future time or subject to some condition thereafter to be
fulfilled, the contract is called an agreement to sell.”
Unpaid Seller
According to the sales of goods act, 1830 the seller of goods is deemed to be an
unpaid seller when. The whole of the price is not paid or rendered.The bill of exchange or other negotiable instrument has been received as
conditional payment and the condition on which it has was received has not
been fulfilled by reason of the dishonour of the instrument.
Examples
X sold certain goods to Y for Rs. 50,000. Y paid Rs. 40,000 but fails to pay the
balance. X is an unpaid seller.
P sold some goods to R for Rs. 60,000 and received a cheque for a full price. On
presentment the cheque was dishonoured by the bank. P is an unpaid seller.
Difference between Sale & Agreement to sale
When in a contract of sale, the exchange
of goods for money Consideration takes
place immediately, it is known as sale.
In sale, title of goods is transferred to the
buyer with the transfer of goods.
When in a contract of sale the parties to
contract agree to exchange the goods for
a price at a future specified date is known
as Agreement to sale.
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