Question

Solve:
State whether the following contracts of sale amount to sale or an agreement to sell.
Case (a): X entered into a contract for sale of the entire crop of rice that would yield on his farm.
Case (b): A railway administration entered into a contract for sale of coal-ash that might. accumulate during the period of contract.
Case (c): X entered into a contract for sale of some goods in a particular ship to be delivered on the arrival of the ship.
Case (d): X entered into a contract for sale of a painting only if Z, its present owner, sells it to him.

Answer 1

The basic difference between a contract and an agreement is that contract is based upon certain terms and conditions but any agreement is not bounded to any term and condition.

Case (a) is an agreement to sell as X had a deal about all the rice grown on the farm.

Case(b) is a contract because A has put a condition during the deal that he will sell only that coal which belongs to contract year.

Case(c) is an agreement since the sale of goods will done on arrival of ship only and this is not a kind of term or condition.

Case(d) is a contract of sale because X clearly stated that he would agree about painting deal if Z sells it to him.