When transfer of property in goods is to take place at future time or subject to some conditions thereafter to be fulfilled, the contract is called :

The correct answer is - Agreement to sell

Key Points

• Agreement to sell
  • When the transfer of property in goods is intended to occur at a future time or subject to certain conditions being fulfilled, it is classified as an agreement to sell.
  • The ownership of goods does not pass to the buyer until the specified conditions are satisfied or the agreed time arrives.
  • An agreement to sell becomes a contract of sale when conditions are met and the transfer of ownership occurs.

Additional Information

• Contract of sale
  • A contract of sale is created when the ownership of goods is transferred immediately from the seller to the buyer.
  • It is a completed transaction, whereas an agreement to sell is conditional or future-based.
• Specific goods
  • Specific goods refer to goods that are clearly identified and agreed upon at the time of forming the contract.
  • They differ from future goods, which are goods that will be manufactured or acquired by the seller in the future.
• Future goods
  • Future goods are goods that do not exist at the time of the contract but are expected to be produced or acquired later.
  • An agreement to sell involving future goods is conditional upon the seller acquiring those goods.