What is an agreement where a seller agrees to transfer title of goods to a buyer at a future time for a consideration?

The agreement where a seller agrees to transfer title of goods to a buyer at a future time for a consideration is best described as a contract to sell. In this type of agreement, the transfer of ownership does not occur immediately; instead, it is set to take place at a later date as stipulated by the terms of the contract. This means that, until the transfer occurs, the risk and benefits associated with the goods remain with the seller, even though the buyer has committed to purchasing them.

This distinction is crucial because it contrasts with other forms of sale agreements, such as an outright sale of goods, where the title and ownership of the goods transfer immediately upon agreement and payment. In a purchase agreement, while it can also indicate the intent to purchase, it may not explicitly detail the terms regarding the future transfer of title. A bill of sale is a document that provides evidence of the transfer of ownership of goods but does not entail the concept of a delayed transfer within its definition. Thus, a contract to sell specifically captures the element of future consideration and title transfer, highlighting its significance in commercial transactions.