A ‘Contract of Sale‘ is a type of contract whereby one party (seller) either transfers the ownership of goods or agrees to transfer it for money to the other party (buyer). A contract of sale can be a sale or an agreement to sell.

In a contract of sale, when there is an actual sale of goods, it is known as Sale whereas if there is an intention to sell the goods at a certain time in future or some conditions are satisfied, it is called an Agreement to sell.

Both sale and agreement to sell are types of contract, wherein the former is an executed contract whereas the latter represents an executory contract

Difference Between Sale and Agreement to Sell

Basis of Difference	Sale	Agreement to Sell
Time of Exchange of Goods	In the contract of sale, the exchange of goods takes place immediately.	In the agreement to sell the parties agree to exchange the goods for a price depending on the fulfilment of certain conditions at a future specified date.
Type of Contract	It is an executed contract.	It is an executory contract.
Right	It creates a right in rem.	It creates a right in personam.
Right to Resell	The seller has no right to resell.	The seller has the right to resell the same goods if the conditions are not fulfilled.
Transfer of risk	Yes , Immediately	No.
Consequences of subsequent loss or damage to the goods	Responsibility of buyer	Responsibility of Seller
Rights in case of breach	Violation of Sale can result in a suit for price as well as damages.	Any violation of terms of an Agreement to Sale can result only in a suit for damages.
Insolvency of Seller	If the seller becomes solvent, the buyer is entitled to recover the goods for which he has paid.	If the seller becomes solvent, the buyer is entitled to recover the goods for which he has paid.
Insolvency of Buyer	If buyer becomes insolvent without having paid for goods, the seller can claim for recovery of price	Here, the seller can refuse to deliver the goods to the buyer.

 Further Reading

Types of Goods