Agreement to Sale:
An agreement to sale is a contract for the future sale of goods where the transfer of ownership or property will occur at a later date. This means that the buyer does not immediately acquire ownership of the goods but agrees to purchase them in the future. Here are the key features of an agreement to sale:
1. Future transfer of ownership: In an agreement to sale, the transfer of ownership or property will happen at a future date, usually upon the fulfillment of certain conditions or completion of specific tasks.
2. Intent to sell: Both the seller and the buyer enter into the agreement with the intention to sell and purchase the goods. The agreement outlines the terms and conditions of the sale, including the price, quantity, quality, and delivery terms.
3. Obligation to sell: The seller is obligated to sell the goods to the buyer once the agreed-upon conditions are met or the specified tasks are completed. Similarly, the buyer is obligated to purchase the goods as per the terms of the agreement.
4. Risk and rewards: Until the transfer of ownership occurs, the risk and rewards associated with the goods remain with the seller. This means that any damages, loss, or benefits related to the goods are the responsibility of the seller until the buyer becomes the owner.
5. Legal enforceability: An agreement to sale is legally binding and enforceable by law. If either party fails to fulfill their obligations under the agreement, the other party can seek legal remedies, such as specific performance or damages.
It is important to note that an agreement to sale is different from a completed sale. In a completed sale, the ownership of the goods is immediately transferred to the buyer upon payment, whereas in an agreement to sale, the transfer of ownership happens at a future date.