Multiple choice

A contract for sale of goods worth Rs. 10000 where property would pass to the buyer on payment of total price would be.

  1. Sale

  2. sale or approval basis

  3. Agreement to sell

  4. Hire purchase agreement
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In this case, property (ownership) is to pass in the future upon payment of the total price. This makes it an 'agreement to sell' rather than an absolute 'sale' where property passes immediately. A hire purchase would also involve installment payments but this scenario lacks that explicit terminology.

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