Multiple choice

A contract for the sale of goods which provides that the property would pass to the buyer on full payment of price and execution of sale deed, is known as a/an

  1. sale

  2. agreement to sell

  3. hire-purchase agreement

  4. sale of approval
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In a sale, property passes immediately. In an agreement to sell, property is to pass in the future upon fulfillment of certain conditions. Here, property passes only on full payment and execution of sale deed, making it an agreement to sell that may convert into a sale when conditions are met.

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