Multiple choice

A contract for sale of goods, where property would pass to the buyer on payment of total price, would be a/an

  1. sale

  2. agreement to sell

  3. hire-purchase contract

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

In a 'sale', ownership (property) transfers immediately to the buyer. In an 'agreement to sell', property transfer is deferred to a future date - in this case, upon full payment of the price. This deferred transfer is the defining characteristic that distinguishes an agreement to sell from an outright sale.

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