An Agreement to Sell Will Become a Sale Is Mcq

An agreement to sell is a legal contract between two parties, where one party agrees to sell and the other party agrees to buy a particular product or service. This type of contract is common in business transactions, and it is essential to understand its significance to avoid any potential legal disputes.

The agreement to sell is not the same as a sale. The agreement to sell is a promise to sell the product or service in exchange for the payment of the agreed price. On the other hand, a sale is the actual transfer of ownership of the product or service from the seller to the buyer. This transfer of ownership happens when the payment is made, and the seller delivers the product or service to the buyer.

Now, let`s look at the multiple-choice question, “An agreement to sell will become a sale when…” There are certain conditions that must be fulfilled for an agreement to sell to become a sale. These include:

1. Payment of the agreed price: The buyer must pay the agreed price to the seller to complete the transaction.

2. Delivery of the product or service: The seller must deliver the product or service to the buyer as per the terms of the agreement.

3. Transfer of ownership: The ownership of the product or service must be transferred from the seller to the buyer.

Based on these conditions, the correct answer to the multiple-choice question would be “the payment is made, and the seller delivers the product or service to the buyer.” This is when the agreement to sell becomes a sale. It is important to note that until all the conditions are fulfilled, the agreement to sell remains just a promise to sell, and the ownership of the product or service remains with the seller.

In conclusion, understanding the difference between an agreement to sell and a sale is crucial in business transactions. It can help avoid any legal disputes and ensure a smooth transaction process. When an agreement to sell is fulfilled by completing all the necessary conditions, it becomes a sale, and ownership of the product or service is transferred to the buyer.