A sale is a type of contract in which the seller transfers the ownership of goods to the buyer for a money consideration. Here the relationship between the seller and buyer is of creditor and debtor.
An agreement to sell is also a contract of Sale of goods, in which the seller agrees to transfer goods to the buyer for a price at a later date or after the fulfillment of a condition.
When the vendor sells goods to the customer for a price, and the transfer of goods from the vendor to the customer takes place simultaneously, it is known as a Sale. When the seller agrees to sell the goods to the buyer at a future specified date or after the necessary conditions are fulfilled, it is known as an Agreement to sell.
The nature of the Sale is absolute, while an agreement to sell is conditional.
A contract of Sale is an example of Executed Contract. In contrast, the Agreement to Sell is an example of an Executory Contract.
Risk and rewards are transferred with the transfer of goods to the buyer in Sale. On the other hand, risk and rewards are not transferred as the goods are still in possession of the seller.
If the goods are lost or damaged subsequently, in the case of Sale, it is the buyer's liability. Still, if we talk about an agreement to sell, it is the seller's liability.
Tax is imposed at the time of Sale, not at the time of Agreement to sell.
In the case of a sale, the right to sell the goods is in the hands of the buyer. Conversely, in agreement to sell, the seller has the right to sell the goods.