Contract of Sale

A Contract of Sale is an agreement between a buyer and a seller whereby the seller agrees to
give or deliver something to the buyer for a certain price which the buyer agrees to pay.

- In contracts like this, when the buyer pays and the seller delivers, the transfer of
ownership is also done at the same time.
- In Contract of sale; from the moment that they agree on the contract of sale or from the
moment both parties signed the contract of sale there is transfer of ownership.
For example: when the buyer purchase

This is usually not applicable to situations where the seller is not yet ready to deliver the thing
being sold. Nor is it applicable where the buyer is not yet ready to pay the price in full.

However, even if the buyer cannot pay in full right away, both parties may still agree on the
transfer of ownership to the buyer. This is, provided that the seller can readily deliver what he
is selling. And subject to what we call a “resolutory condition” that when the buyer fails with his
payment(s), the seller will take back the thing sold.

In real estate transactions, this type of contract is usually executed only when the property is
ready to be turned over and if the buyer is ready to pay the price in full.

In contracts like this, when the buyer pays and the seller delivers, the transfer of ownership is
also done at the same time.

This is usually not applicable to situations where the seller is not yet ready to deliver the thing
being sold. Nor is it applicable where the buyer is not yet ready to pay the price in full.

In a contract to sell there is no transfer of ownership yet to the buyer until full payment of the
purchase price.

Contract of sale; from the moment that they agree on the contract of sale or from the moment
both parties signed the contract of sale there is transfer of ownership.

Generally, in a Contract to Sell, the ownership is not transferred to the buyer upon the
execution of the contract. In a Contract of Sale, the ownership is transferred to the buyer right
upon its execution.

A voidable contract is a formal agreement between two parties that may be rendered
unenforceable for any number of legal reasons, which may include:

Failure by one or both parties to disclose a material fact

A mistake, misrepresentation, or fraud
Undue influence or duress
One party's legal incapacity to enter a contract (e.g., a minor)
One or more terms that are unconscionable
A breach of contract

A voidable contract is initially considered legal and enforceable but can be rejected by one
party if the contract is discovered to have defects. If a party with the power to reject the
contract chooses not to reject the contract despite the defect, the contract remains valid and
enforceable.
Most often, only one of the parties is adversely affected by agreeing to a voidable contract in
which that party fails to recognize the misrepresentation or fraud made by the other party.

A voidable contract occurs when one of the involved parties would not have agreed to the
contract originally if they had known the true nature of all of the elements of the contract prior
to original acceptance. With the presentation of new knowledge, the aforementioned party has
the opportunity to reject the contract after the fact. Alternatively, a contract is voidable when
one or both parties were not legally capable of entering into the agreement—for example,
when one party is a minor.

Voidable Contract refers to a contract in which one party is in a position or has the right to
rescind or enforce the contract, when it is found out the contract contains some defects, as to
the free consent of the parties involve. This means that there is a lack of free consent of one of
the parties to the contract and so the party whose consent is affected has the right to deny
performing his part or obligation. However if the aggrieved party fails to exercise the option
within reasonable time it may turn into a legally binding contract. Moreover, if the party
chooses not to repudiate the contract then despite the fact the contract remains valid and
enforceable. Now come lets discuss this with an example.

A voidable contract is one that can be canceled or altered for qualified legal reasons.
Not all contracts are voidable; legal precedent must exist to absolve responsibility.