Q:- What is sale ?

What are the essentials of a

valid sale ? What is contract for sale ? What are the
difference between the two ?

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Answer:Sale is defined by section 54 of the Transfer of Property Act . According to the section 54 sale is
a transfer of ownership in exchange for a price paid or promised , or partly paid and partly
promised to pay .
The essentials of a valid sale are as follows :1) According to section 7 , the seller must be a competent person to transfer .
2) According to section 6 , the transferee must be a competent person and must not be a person
disqualified to be a transferee .
3) According to section 6 , the subject matter should be transferable immovable property .
4) The ownership must be transferred .
5) The transfer of ownership must be in exchange for price .
6) The price must be paid or promised to pay or partly paid and partly promised to pay .
7) The deed of conveyance must be registered in case of transfer of a tangible immovable
property of the value of ` Rs. 100 /- and upwards .
8) In case of tangible immovable property of a value less than Rs. 100 /- , there must be either a
registered deed of conveyance , or delivery of property .

A contract for sale is also defined by section 54 of the Act . According to section 54 a contract
for sale of immovable property is a contract that a sale of such property shall take place on terms
settled between the parties . It does not , of itself , create any interest in , or charge on , such
property .

In English law , the purchaser , by virtue of the contract for sale , becomes owner of the
property , from the date of the contract , according to equity . But in India , vendor's ownership
in the property is not affected by the contract for sale until the deed of conveyance is not
registered .
The difference between sale and contract for sale may be shown in the following tabular form .
Sale .
1.

Contract for sale.

Sale is a transfer of ownership of Contract

immovable property .

for

agreement

sale

to

is

sell

only

an

immovable

property in future on such terms

settled between the parties .
2.

Sale

creates

interest

in

the Contract for sale does not create

immovable property in favour of the any ---purchaser .

a) interest in ,
b) or charge on such property .
Ownership remains intact in favour
of the vendor .
3.

Sale passes an absolute legal title to Contract for sale does not pass any
the purchaser .

4.

legal title to the purchaser .

Sale creates a right in rem in favour Contract for sale creates only a right
of the purchaser .

in

personam

in

favour

of

the

purchaser enforceable against the

promisor or a subsequent purchaser
without notice.
5.

Sale must be completed by a deed According to the explanation 17, of

of registered conveyance in case of the Indian Registration Act , a

---

contract

for

sale

registered at all .
a) a tangible immovable property of
the value of Rs. 100 or more ,
b) a reversion or
c) other intangible thing.

need

not

be