Legal Definitions - present sale

A "present sale" refers to a type of contract for the sale of goods where the legal ownership (or "title") of those goods transfers from the seller to the buyerat the very moment the contract is made. This transfer of ownership occurs regardless of whether the goods have been physically delivered or if the full payment has been completed. The defining characteristic is the immediate shift of legal rights and responsibilities for the goods from the seller to the buyer upon the formation of the agreement.

• Example 1: Retail Purchase

  Imagine a customer browsing in a furniture store who decides to purchase a specific display model armchair. They agree on the price with the salesperson and complete the payment at the register. Even if the customer arranges for the store to deliver the armchair to their home the following day, this transaction is a present sale. The legal ownership of that particular armchair transfers to the customer the instant the payment is processed and the sale is finalized, even though physical possession will occur later.

• Example 2: Agricultural Goods

  Consider a farmer who has harvested a large quantity of corn and stored it in a specific silo on their property. A grain distributor visits, inspects the corn in that silo, and agrees to purchase the entire contents. They sign a contract detailing the quantity and price, with the understanding that the distributor will send trucks to pick up the corn over the next two weeks. This is a present sale because, upon signing the contract, the legal title to all the corn in that specific silo immediately transfers to the distributor, even though the physical removal of the corn is deferred.

• Example 3: Vehicle Sale Between Individuals

  A private seller lists their used motorcycle for sale. A buyer inspects the motorcycle, agrees to the price, and they complete the transaction by signing the title transfer documents and exchanging keys and payment. This is a present sale. At the moment the title is signed over and the payment is made, the legal ownership of the motorcycle transfers to the buyer. Even if the buyer leaves the motorcycle parked in the seller's garage overnight because they need to arrange for insurance or transport, the motorcycle legally belongs to the buyer from the time the contract was concluded.