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In the table below, we’ve explained the difference between sale and agreement to sell;
| Sale | Agreement to Sell | |
| 1. | It is an executed contract operating as actual transfer of ownership. | It is an executory contract with ownership being transferred on at a future specified date. |
| 2. | Sellers can sue buyers for the price. | Sellers can only sue for unliquidated damages for breach of contract. |
| 3. | If Sellers default, buyers can sue for damages and delivery. | Upon default by the sellers, Buyers can only sue for damages claim |
| 4. | Ownership and risk pass to the buyers at the point of sale. | Ownership does not pass to the buyers, therefore the risk of loss remains with the sellers. |
| 5. | VAT is charged at the time of sale. | No tax is levied. |
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