Distinguish between sale and lease.
Find the answer to the mains question of Property Law only on Legal Bites.;
Question: Distinguish between sale and lease. [BJS 2000]Find the answer to the mains question of Property Law only on Legal Bites. [Distinguish between sale and lease.]Answer The concepts of sale and lease are both forms of transferring rights in property, but they differ fundamentally in nature, scope, and legal consequences. Below is a structured comparison between the two: Point of Distinction Sale Lease Definition A sale is a transfer of absolute ownership of goods...
Question: Distinguish between sale and lease. [BJS 2000]
Find the answer to the mains question of Property Law only on Legal Bites. [Distinguish between sale and lease.]
Answer
The concepts of sale and lease are both forms of transferring rights in property, but they differ fundamentally in nature, scope, and legal consequences. Below is a structured comparison between the two:
| Point of Distinction | Sale | Lease |
|---|---|---|
| Definition | A sale is a transfer of absolute ownership of goods or property from the seller to the buyer for a price. | A lease is a transfer of the right to enjoy the property for a specified time in return for consideration (rent), without transferring ownership. |
| Ownership | Ownership is permanently transferred to the buyer. | Ownership remains with the lessor (owner); only possession is transferred. |
| Governing Law | Governed by the Sale of Goods Act, 1930 (for movable goods) and the Transfer of Property Act, 1882 (for immovable property). | Governed by Section 105 of the Transfer of Property Act, 1882. |
| Consideration | The consideration is paid as price (lump sum or in installments). | The consideration is paid as rent or premium, periodically or otherwise. |
| Possession | Possession usually passes along with ownership. | Possession is given, but ownership is retained by the lessor. |
| Right to Transfer | Buyer becomes the absolute owner and can further sell, gift, or mortgage the property. | Lessee cannot transfer the property; only sub-lease or assign with permission (if allowed). |
| Duration | Sale is permanent and not for a limited period. | Lease is for a specific term—temporary in nature. |
| Termination | Cannot be terminated unless through resale or legal process. | Terminates automatically after the expiry of lease period or by notice. |
| Registration | Required for immovable property above ₹100 under the Registration Act, 1908. | Leases exceeding 12 months must be registered; short-term leases may be exempt. |
| Legal Interest | Buyer acquires legal and equitable interest in the property. | Lessee only acquires a right of possession and enjoyment. |
A sale results in a complete transfer of ownership, whereas a lease is merely a temporary transfer of possession and enjoyment. The rights, obligations, and legal implications differ significantly, making it essential to distinguish them correctly, especially in property transactions.