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.
Mayank Shekhar
Mayank is an alumnus of the prestigious Faculty of Law, Delhi University. Under his leadership, Legal Bites has been researching and developing resources through blogging, educational resources, competitions, and seminars.