Section 54 of transfer of property , act 1882.
Section 54 . “Sale defined” – Sale is a transfer of ownership in exchange for a price paid or promised or part paid and part .
Sale how made – Such transfer , in the case of tangible immovable property of the value of 100 rupees and upwards , or in the case of reversion or other intangible thing , can be made only by a registered instrument.
In the case of tangible immovable property of a value less than 100 rupees, such transfer may be made either by a registered instrument or by delivery of the .
Delivery of tangible immovable property takes place when the seller places the buyer or such person as he directs in possession of the property.
Contract for sale :- A contract for the sale of immovable property is a contract that a sale of such property shall take place on terms settled between the parties.
Definition of sale :-
An owner has three basic over his property, a right of title and exclusive right to possess and enjoy the property and an exclusive right to alienate it. In a sale of property , all these rights are conveyed by the owner with his free consent in favour of the transferee who is called a buyer. No rights remain with the seller ,and the transfer of this totality of rights is called an absolute transfer. A conveyance to be a sale involves intention of the parties to transfer the property for a consideration and vesting of all rights in the properties sold in the buyer and divesting of all rights as far as the transferor is concerned. In contrast , a lease and a mortgage are transfer of a right in the property , but not approved transfers.
General power of attorney:-
A power of attorney is not a sale, but a power of attorney simply authorise the grantee to do certain acts with respect to the property including if the grantor permits an authority to sell the property .
Grantor – owner of property , grantee – power of attorney .
it is revocable and irrevocable both.
Sale & a hire purchase agreement
Hire purchase agreement make culminate in a sale , but till it does so , there exists a right in favour of the transferor to rescind the agreement and take back the possession of his property .
while payment to installment is as accepted feature of hire purchase agreement the terms of payment of consideration in a sale are purely dependent upon the agreement between the parties.
Sale & exchange:-
The methods & formalities for executing sale & exchange are almost similar. The two primary differences between an exchange & a sale are :-
1) In sale generally one property Exchanged with money but in exchange one property Exchanged with another property.
2) Sale the consideration is money but in exchange consideration is not money
Sale & lease :-
In case of a lease , there is a partial transfer and the right of reversion remains with the lessor , where as in case of a sale , there must be an absolute Transfer of ownership and not some rights only as in the case of a lease.
Essentials of a valid sale :-
1) Parties to a sale
2) Subject matter of sale
4) Mode of executing a sale.