Question

On March 1, 2019, Asad agreed to sell his car to Ali for Rs. 500,000/-. It was agreed between themselves that the ownership of the car will transfer to Ali on March 31, 2019 when the car will get registered in Ali’s name. Justify whether it is “sale” or “agreement to sell”

Its business law subject

Answer 1

Answer - It is aggrement to sell

Reason - Agreement to sell states that when the transfer of goods or property take place at future date or time or transfer take place after fulfilling the required condition then it is called as aggrement to sell

Here, in this case since since Asar agreed to sell his car to Ali for Rs 500000 on 1st march 2019 but the ownership will be transferred to Ali on 31st March 2019. Since the ownership of good agreed to be transfer on future date hence this will be regarded as "Agreement to sell"