Sale of Goods

The contact for the sale of goods that provides that the property would pass to the buyer on full payment of price and execution of a sale deed is known as an Agreement to Sell. Let's understand the concept in detail.

Agreement to Sell
An agreement to sell is a contract where the seller agrees to transfer the ownership of goods to the buyer in the future, upon the happening of certain conditions, such as full payment of the price. Until the conditions are fulfilled, the seller remains the owner of the goods.

Property Passing on Full Payment and Execution of Sale Deed
In this specific case, the agreement states that the property will pass to the buyer on two conditions:
1. Full payment of the price: The buyer needs to make the complete payment of the agreed price to the seller.
2. Execution of sale deed: The buyer and seller need to execute a sale deed, which is a legal document that transfers the ownership of the goods from the seller to the buyer.

Property Ownership
Until both conditions are fulfilled, the buyer does not become the owner of the goods. The seller retains the ownership until the full payment is made and the sale deed is executed. Once these conditions are met, the property passes to the buyer, and they become the rightful owner.

Difference from Sale Agreement
An agreement to sell is different from a sale agreement. In a sale agreement, the property immediately passes to the buyer, even if the payment is not made in full. However, in an agreement to sell, the property passes only after the conditions are fulfilled.

Conclusion
In conclusion, the contact for the sale of goods that provides that the property would pass to the buyer on full payment of price and execution of a sale deed is known as an agreement to sell. This contract ensures that the buyer becomes the owner of the goods only after fulfilling the conditions mentioned in the agreement.

Agreement to Sell

An agreement to sell is a contract between a buyer and a seller where the seller agrees to sell certain goods to the buyer at a future date upon the fulfillment of certain conditions. The property in the goods does not pass to the buyer immediately but is transferred at a later stage. This type of agreement is commonly used when the seller wants to retain ownership of the goods until certain conditions are met, such as full payment of the price and execution of a sale deed.

Property Passing on Full Payment and Execution of Sale Deed

In the given scenario, the contact for the sale of goods states that the property would pass to the buyer on full payment of the price and execution of a sale deed. This means that the buyer will not become the owner of the goods until both these conditions are fulfilled.

- Full Payment of Price: The buyer is required to make the full payment of the agreed price for the goods. Until the payment is made in full, the seller retains ownership of the goods.

- Execution of Sale Deed: In addition to the payment, the buyer and seller must also execute a sale deed. A sale deed is a legal document that transfers the ownership of the goods from the seller to the buyer. It contains all the details of the transaction, including the identification of the parties, description of the goods, price, and other terms and conditions.

Why it is an Agreement to Sell

The given contract is an example of an agreement to sell because the property in the goods does not pass immediately to the buyer. The buyer only acquires ownership of the goods when both the payment and the execution of the sale deed are completed. Until then, the seller retains the ownership and possession of the goods.

An agreement to sell provides certain benefits to both parties involved:

- For the seller, it ensures that they retain ownership and control of the goods until all the conditions are met, reducing the risk of non-payment or default by the buyer.

- For the buyer, it allows them to secure the goods they intend to purchase while providing time for arranging funds and completing other legal formalities.

Overall, an agreement to sell is a useful legal instrument that protects the interests of both the buyer and the seller until all the conditions for the transfer of ownership are fulfilled.