What is an agreement to sell?

Where under a contract of sale the transfer of 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’ [Sec. 4(3)]. It is an executory contract and refers to a conditional sale.


(a) On 1 January, A agrees with B that he will sell B his scooter on 15 January for a sum of Rs. 3,000. It is an agreement to sell, since A agrees to transfer the ownership of the scooter to B at a future time.

(b) A agrees to purchase B’s car for Rs 5,000 provided B stands surety for him with C. It is an agreement to sell for B. It becomes a sale when the condition is fulfilled by B.

(c) B agrees to buy A’s car for Rs. 30,000 and pay for it, if his solicitor approves. It is an agreement to sell for A and an agreement to buy for B.

(d) A buys some furniture for Rs. 2,000 and agrees to pay for that in two monthly installments, the ownership to pass to him on the payment of second installment. There is an agreement to sell for the furniture dealer.

‘An agreement to sell’ becomes a ‘sale’ when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred [Sec. 4(4)].
7. No formalities to be observed: A contract of sales of goods can be made by mere offer and acceptance. Neither payment nor delivery is necessary at time of making the contract of sale. It can be made either orally or in writing or partly orally or partly in writing or may be even implied from the contact of the parties.
Share This
Previous Post
Next Post