Professional Documents
Culture Documents
contract of sale
1. Introduction
Sale is transferring of property or ownership by a seller to the buyer in exchange for a price paid or
promised to part paid or part promised. There is absolute transfer of all rights in the property sold. The
seller must be competent to transfer the property.
2. Relevant Provisions
3. Meaning of Sale
Sale is a contract between two parties called respectively the seller and buyer by which the former in
consideration of the payment or promise to pay a certain price in money transfers to the latter the title
possession of the property.
4. Definition of Sale
Sale is a transfer of ownership in exchange for a price paid or promised or part paid and part promised.
(i) Parties
For sale, it is essential that there should be at least two parties. Among these parties, one should be
transferor and other should be transferee.
Another ingredient of sale is subject matter. Subject matter means that thing, which should be capable
of being transferred.
(iii) Transfer
For sale, it is necessary that there should be transfer of something form one person to another person.
(ii) By the delivery of the property if its value is less than 100/=
A sale of intangible immoveable property such as mortgage deed or any other right can be made by a
registered instrument.
(i) Sale is a transfer of ownership for a price. An exchange also implies a transfer of ownership but not
for a price.
(ii) In an exchange, the ownership one thing is transferred for the ownership of another thing, neither
thing being money.
Following are main differences between sale deed and deed of contract of sale
(i) Definitions
Under Transfer of Property Act, different definitions of sale and contract of sale have been provided. It
means that sale and contract of sale are two different legal terms.
In sale or sale deed, rights are created in favor of transferee. In fact, all rights, which transferor
possesses in property, are transferred to transferee. On the other hand, on such rights are transferred in
favor of transferee in case of contract of sale. Therefore, no rights are created in favor of transferee
through contract of sale.
In respect of property, charge is created through sale or sale deed. Contrary to this, no such charge is
created through contract of sale or deed of contract of sale.
Sale deed is considered closing point of sale because it completes sale while contract of sale is
considered beginning point of sale because it makes some agreement or promise for sale.
Through sale deed or sale, interest, which is about property, is transferred to transferee where as no
such interest is transferred through contract of sale or deed of contract of sale.
Sale or sale deed creates that right in ram, which is available against the world. Contrary to this, contract
of sale or deed of contract of sale creates only personal right.
(viii) Revocation
Sale or deed of sale is not revocable, but contract of sale of deed of contract of sale can be revocable.
Conclusion
To conclude I can say that sale is transfer of ownership for price. In a sale there is an absolute transfer of
all rights in the property sold. No rights are left in the property. In both sale and exchange there is
transfer of ownership but in the former transfer of ownership is for the price and in latter it is exchange
of another thing.