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The Transfer of Property Act, 1882

[Sec. 54
from mortgage, lease and

agreement. In mortgage, there is transfer of

interest in the property, in lease, there is transfer of right to enjoy the property whereas in
hire-purchase agreement, the transferee is given the right to terminate the agreement in
comparison to sale whereas in sale, the transferee has to pay the entire money (purchase_
price) at once and all the rights of the transfer are transferred to him. The two that are
necessary to constitute a sale are transfer of ownership and money COnSideration.
Ownership means bundle of all the rights and liabilities in a property. When there is
transfer of ownership all these rights and liabilities are transferred to the transferee and
nothing is left for the transferor. The ownership of the property must be transferred in
exchange of money. The money in exchange of ownership is called the 'price'. Where the
ownership is transferred in exchange or ownership of some other property, it is known as
'exchange' and where ownership is transferred for nothing, it is known as gift. Transfer of
ownership only for money consideration is known as 'sale'.l
Though generally time is considered to be the essence of the contract, the legal
proposition is that time is not the essence of the contract regarding the sale of immovable
properties, unless it is specifically stipulated that time that is fixed in the sale agreement
is a relevant factor and the said time is considered to be the essence of the contract further
putting the other side on notice to the said effect.
Where the vendee was ready and willing to execute the sale-deed but vendor could not
deliver vacant possession of the suit property, the vendee was held entitled to refund of
advance with reasonable interest.2
Where mutation in favour of vendee was sanctioned but its notice was not given to the
vendee though it was required under the agreement to sell immovable property and
vendor did not call upon the vendee to get the sale-deed executed, it was held that the
conduct of the vendor showed that the time was not the essence of the contract.3
1

2. Essentials of a Sale
The essential elements of a sale are given below:
Parties
Subject-matter
Money-consideration
Conveyance
(1) Parties
There must be at least two parties in a sale. The person who transfprs the property is
known as transferor or seller or vendor. The person purchasing ty known as transferee,
purchaser or vendee.
For constituting a valid sale, both the seller and etent on the date of sale. The seller must
be competent to cort d mind and must have attained the age of majority.4 Besides
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3. Suit on the basis of Oral Sale
Agreement for Reconveyance
4, Cancellation of Sale Deed
Difference between Sale and Contract of
5. Will

Sale Comments

section 54 deals with three different subjects which are given below and will be discussed
one after the other:-
Definition of sale
Mode of transfer by sale
Contract for sale
1. Definition of Sale
Section 54 says that "sale" is a transfer of ownership in exchange for a price paid or
promised or part-paid and part-promised. Therefore, sale is transfer of ownership
* As to limitation to the territorial operation of paragraphs 2 and 3 of section 54, section
1, supra. These paragraphs extend to every cantonment see section 287 of the
Cantonments Act, 1924 (2 of 1924).
2

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