Sale is transferring of property or ownership by a seller to the buyer in exchange for a price paid or promised to part paid or part promised. There is absolute transfer of all rights in the property sold. The seller must be competent to transfer the property.
2. Relevant Provisions
Section 54, 55 of transfer of property act 1882.
3. Meaning of Sale
Sale is a contract between two parties called respectively the seller and buyer by which the former in consideration of the payment or promise to pay a certain price in money transfers to the latter the title possession of the property.
4. Definition of Sale
Sale is a transfer of ownership in exchange for a price paid or promised or part paid and part promised.
5. Essential Ingredients of Sale
Following are basic essentials of sale;
For sale, it is essential that there should be at least two parties. Among these parties, one should be transferor and other should be transferee.
(ii) Subject Matter
Another ingredient of sale is subject matter. Subject matter means that thing, which should be capable of being transferred.
For sale, it is necessary that there should be transfer of something form one person to another person.
(iv) Price or consideration
It is also ingredient of sale that transfer of something should be in exchange of price.
6. Sale How Made
(i) In case of Tangible Property
A sale of tangible immovable property such as house building can be made.
(i) By a registered instrument if its value is Rs. 100/= or upwards.
(ii) By the delivery of the property if its value is less than 100/=
(ii) In case of Intangible Property
A sale of intangible immoveable property such as mortgage deed or any other right can be made by a registered instrument.
7. Distinction between sale and Exchange
(i) Sale is a transfer of ownership for a price. An exchange also implies a transfer of ownership but not for a price.
(ii) In an exchange, the ownership one thing is transferred for the ownership of another thing, neither thing being money.
In a sale, the price is always money.
8. Differences between Sale deed and deed of contract of sale or Difference between sale and contract of sale
Following are main differences between sale deed and deed of contract of sale
Under Transfer of Property Act, different definitions of sale and contract of sale have been provided. It means that sale and contract of sale are two different legal terms.
(ii) Creation of Rights
In sale or sale deed, rights are created in favor of transferee. In fact, all rights, which transferor possesses in property, are transferred to transferee. On the other hand, on such rights are transferred in favor of transferee in case of contract of sale. Therefore, no rights are created in favor of transferee through contract of sale.
(iii) Creation of Charge
In respect of property, charge is created through sale or sale deed. Contrary to this, no such charge is created through contract of sale or deed of contract of sale.
(iv) Beginning and Closing point
Sale deed is considered closing point of sale because it completes sale while contract of sale is considered beginning point of sale because it makes some agreement or promise for sale.
(v) Transfer of Interest
Through sale deed or sale, interest, which is about property, is transferred to transferee where as no such interest is transferred through contract of sale or deed of contract of sale.
(vi) Transfer of Property
In case of sale or sale deed, there is immediate transfer of property from transferor to transferee. On the other hand, there is agreement or promise to make such transfer in case of contract of sale or deed of contract of sale.
(vii) Nature of Rights
Sale or sale deed creates that right in ram, which is available against the world. Contrary to this, contract of sale or deed of contract of sale creates only personal right.
Sale or deed of sale is not revocable, but contract of sale of deed of contract of sale can be revocable.
To conclude I can say that sale is transfer of ownership for price. In a sale there is an absolute transfer of all rights in the property sold. No rights are left in the property. In both sale and exchange there is transfer of ownership but in the former transfer of ownership is for the price and in latter it is exchange of another thing.