Sale distinguished from Dacion en Pago:

 Sale, there is no pre-existing credit while Dacion en Pago there is a pre-existing credit.
 Sale creates obligation while Dacion en Pago extinguishes obligation.
 Sale the cause or consideration is the price and delivery of the object, while Dacion en Pago the
cause is extinguishment of obligation.
 Sale greater freedom from fixing the price while Dacion en Pago less freedom in fixing the price
because the amount of pre-existing credit which the parties seek to extinguish.

PAYMENT BY CESSION: The debtor may cede or assign his property to his creditors in payment of his debts.
This cession, unless there is stipulation to the contrary, shall only release the debtor from responsibility for the
net proceeds of the thing assigned. The agreements which, on the effect of the cession, are made between the
debtor and his creditors shall be governed by special laws. Definition: Payment by cession is a special form of
payment. It is the assignment/ abandonment / possession of all the property of the debtor for the benefit of
the creditor in order that the latter may sell the same and apply the proceeds thereof to the satisfactions of
their credits.

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. Many law students get confused amidst these two terms,
but these are not one and the same.

Sale distinguished from Barter:

Rule partly in money and partly in another thing:

1. A contract shall be one of sale or barter depending upon the manifest

of parties.
2. If the intention of parties does not clearly appear.
1. The contract is barter if the value of the thing given exceeds the
monetary consideration.
2. The contract is sale if the monetary consideration is more than or
equal to the value of the thing given as part of the consideration.
Sample:

A and B entered into a written contract which states that A, seller

hereby transfers his ring worth 20 000 to B, buyer for B’s cell phone
worth 12 000 and cash of 8000.

What is the contract? Contract of Sale

A and B entered into a written contract which states that A, hereby

transfers his ring worth 20 000 to B, for B’s cell phone worth 12 000
and cash 8000.

What contract entered into? Barter because it does not clearly states
the intention of parties.

A Contract to Sell refers to an agreement between a seller and a buyer. The contract
shows that the seller promises to sell something to the buyer and the buyer also
promises the seller to buy the property. However, the contract does not instantly
transfer the right to the buyer even when this contract is signed. There are still
conditions that have to be fulfilled by one or both parties before transfer of ownership
can take place. The Deed of Absolute sale will only be executed once the conditions
stated in the Contract to Sell have been met.

Agency to sell Contractual arrangement under which an agent acquires the right to negotiate sale
of a principal's goods or services, usually in exchange for a commission or fee computed as a
percentage of sales generated.