Difference Between Sale And Supply Contract

Sale Contract varies from Supply Contract. As per Article (489) of Code of Civil Procedures. Sale contract is a contract whereby the seller undertakes to transfer the title of an object in consideration of a cash amount paid by the purchaser, while the supply contract is a contract whereby the trader or manufacturer undertakes to regularly supply or provide the employer with certain quantities of articles or services produced by him or by third parties, based on specifications agreed upon between the parties, and to deliver the same on certain times to the employer or his representative at the work place unless otherwise agreed upon, in consideration of a price or wage paid by the employer on specified times or upon on the expiration of the contract term. This means that sale contract is immediate while supply contract is temporal.

Cassation Case No. 176 of 2008- Dubai Courts, Session held on 11.11.2008