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CMA Foundation · Fundamentals of Business Laws and Business Communication · Sale of Goods Act, 1930

Under the Sale of Goods Act, 1930, a contract of sale where the transfer of property in the goods is to take place at a future time or after some condition is fulfilled is called:

It is called an agreement to sell. When property is to pass at a future time or after a condition is fulfilled, the contract is an agreement to sell, and it becomes a sale once the time elapses or the condition is met.

  1. AAn agreement to sellCorrect
  2. BA sale
  3. CA bailment
  4. DA hire-purchase

Explanation

Section 4(3) calls the contract a sale where property is transferred at once, and an agreement to sell where transfer is at a future time or subject to a condition. It becomes a sale when the time elapses or the condition is fulfilled.

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