Page 189 - DMGT512_FINANCIAL_INSTITUTIONS_AND_SERVICES

Financial Institutions and Services

Notes That the SECOND PARTY have full right to nominate or assign this Agreement to Sell in favour
of any person or persons, be it a firm, body corporate or association of person and the FIRST
PARTY shall have no objection to it.

That pending completion of the sale, the FIRST PARTY neither shall enter into any agreement
of sale in respect of the said property or any part thereof nor shall create any charges,
mortgage, lien or any arrangement, in respect of the said property in any manner whatsoever.
That the photostat copies of all relevant documents in respect of the said property have
been delivered by the FIRST PARTY to the SECOND PARTY.

That all the expenses of the Sale Deed viz. Stamp Duty, Registration charges, etc. shall be borne
and paid by the SECOND PARTY.
That this transaction has taken place at New Delhi. As such, Delhi Courts shall have
exclusive jurisdiction to entertain any dispute arising out of or in any way touching or concerning
this Deed.
IN WITNESS WHEREOF, the FIRST PARTY and the SECOND PARTY have signed this
AGREEMENT TO SELL at New Delhi, on the date first mentioned above in the presence of
the following witnesses.
WITNESSES:

1. FIRST PARTY.
2. SECOND PARTY.
……………………………………..
Sales v/s Bailment: In a sales, there is a conveyance of property in goods from seller to the buyer
for a price and the buyer becomes the owner of goods and can deal with them in the manner he
likes. In case of leasing there is a mere transfer of possession of goods from the bailor to the
bailee.

Sales v/s Mortgage, Pledge and Hypothecation: The essence of contract of a sale is the transfer of
general property in the goods. A mortgage is a transfer of interest in the goods from a mortgagor
to mortgagee to secure a debt. A pledge is a bailment of goods by one person to another to
secure payment of a debt. A hypothecation is an equitable charge on goods without possession,
but not amounting to mortgage. The essence and purpose of these contract is to secure a debt. All
the three differ from sale, since the ownership in the goods is not transferred which is an
essential condition of sale.

Sale v/s Hire Purchase: A hire purchase agreement is a kind of bailment whereby the owner of
the goods lets them on hire to another person called hirer, on payment of certain stipulated
periodical payments as hire charges or rent. If the hirer makes payments regularly, he gets an
option to purchase the goods on making the full payment. Before this option is exercised, the
hirer may return the goods without any obligation to pay the balance rent. The hirer is however,
under no compulsion to exercise the option and purchase the goods at the end of the agreement
period.
A hire purchase contract, therefore, differs from sale in the sense that:

1. In a hire purchase the possession of the goods is with the hirer while the ownership vests
with the original owner.
2. There is no agreement to buy but only an option is given to hirer to buy the goods under
certain conditions, and
3. The ownership in the goods passes to the hirer when he exercises his option by making the
full payment.

184 LOVELY PROFESSIONAL UNIVERSITY