Multiple choice

A agrees to deliver his old car valued at Rs. 80,000 to B, a car dealer, in exchange for a new car, and agrees to pay the difference in cash it is a/an

  1. contract of sale

  2. agreement to sell

  3. exchange

  4. barter
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A contract of sale involves transfer of ownership in exchange for money. Here, A exchanges his old car (part payment) and pays cash difference for the new car, making it a sale. 'Agreement to sell' is when ownership transfers later. 'Exchange' is only goods-for-goods without money. 'Barter' is also pure goods swap.

Keep practicing — related questions