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GLOSSARY

Agreement to sell definition

What does Agreement to sell mean?

An agreement to sell is an executory contract of sale.

Under the Sale of Goods Act 1979, s 2 (5): where under a contract of sale the transfer of the property in the goods is to take place at a future time, or subject to some condition later to be fulfilled, the contract is called an agreement to sell. An agreement to sell becomes a sale when the time elapses or the conditions are fulfilled subject to which the property in the goods is to be transferred. An agreement to sell creates a right in personam and if the agreement is breached, then the seller's only remedy is an action for unliquidated damages. Similarly, if an agreement to sell is broken by the seller, the buyer has only a personal remedy against the seller. The goods are the property of the seller and he can dispose of them. They may be taken in execution for his debts, and, if he becomes bankrupt, they pass to his trustee in bankruptcy. If goods perish under an agreement


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