Multiple choice

An agreement to sell is an executory contract.

  1. True

  2. False

  3. Partly true

  4. Cannot say
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This is TRUE. An agreement to sell is an EXECUTORY contract meaning the essential obligations remain to be performed - property hasn't passed yet. It becomes a sale (executed contract) when property transfers. This distinction matters for tax, insolvency, and rights of parties - in an agreement to sell, the seller still owns the goods and can resell, whereas in a sale, buyer owns them.

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