Section 4 of the Sale of Goods Act defines a contract of sale as “a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price”. The term “contract of Sale” includes an actual sale as an agreement to sell. It may be absolute or conditional.
When the property in the goods is transferred, the contract is called a sale. The contract called an agreement to sell, when the transfer of property is take place at a future time or subject to fulfilment of some condition. An agreement to sell becomes a sale, when the time lapses or such condition is fulfilled.
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