Mr. Rohit, a trader, entered into a contract with Mr. Mohan for the purchase of100chairs for a total consideration of 1,00,000. The agreement…

Section 4 of the Sale of Goods Act,1930, defines a contract of sale of goods as a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. If the property in goods is transferred at the time of the contract, it is a sale. If the transfer is to take place in the future or subject to some conditions, it is an agreement to sell. Thus, the distinction lies in the passing of ownership, not in the time of payment or delivery. Once ownership is transferred, the buyer becomes owner and must pay the agreed consideration. In the present case, Mohan delivered100chairs to Rohit and ownership was intended to pass immediately as per their agreement. However, Rohit failed to pay the second installment and contended that the contract was incomplete and only an agreement to sell. Since the ownership of chairs had already passed to Rohit at the time of delivery, the contract was a completed sale under Section 4 of the Act. Rohit’s contention that it was only an agreement to sell is legally unsustainable. He is bound to pay the balance of the price to Mohan, and his refusal amounts to a breach of contract.