Sale: The concept of sale and agreement of sale is contained in section 54 of the T.P Act, sale is the transfer of ownership in exchange for a price paid or promise or partly paid and partly promise. One can says that’s sale is the complete ouster of ownership rights from the property. It implies an absolute transfer of all the rights in the property sold ,no rights in the property sold are left with the transfer the two essential elements that are necessary to constitute the sale at transfer of ownership plus money consideration, the ownership of the property must be transferred in exchange of money, the money in exchange of ownership is called the Price.
In all the transaction of sale the price must be pre-determined.
In order to constitute a valid sale.
1. There must be at least two parties to the contract.
2. The subject matter must relate to the transfer of Immovable property only.
3. The transaction of sale must be supported by money consideration.
That is to say price is the essential element of sale which must be pre determined at the time of bargain, payment of price is not a necessary condition for the validity of sale, it can be partly paid or promise.
4. Conveyance means complete transfer, the last condition in order to complete the sale, it must be registered and that registered document known as deed that is to say by delivery of possession of the immovable property to the purchaser upon fulfilment of all the terms and conditions.
Section 54 also contained contract for sale, a contract for sale is also known as agreement of sale, it is a preliminary document, it is the document where by the parties decide that on what terms and conditions the sale will be effective in future, a contract for sale doesn’t confer any title in the Immovable property, it is nearly an agreement in respect of the sale of Immovable property that the parties if so abide to the terms and conditions a registered conveyance deed will be executed on a particular date so agreed.
The breach of which gives rise to a cause of action to sue for specific performance of the contract.
Differences between agreement for sale and sale
1. Agreement of sale is an executory contact, is is executory in nature, it is preliminary document or an initial document whereby the parties agreed to certain terms and conditions.
Where as sale is a complete ouster of ownership which is in a nature of executed document and it is executed finally when the terms and conditions are fulfilled by the parties
2. Agreement of sale does not confer title in favour of the purchaser, where as the sale confers title in favour of purchaser
3. Agreement of sale don’t require registration, where as a sale requires compulsory registration as per section 17 of registration Act.
4. Agreement of sale only creates a right in personam whereas a sale upon execution of sale deed or conveyance deed creates a right in rem in favour of purchaser.
