Section 118-122 of Transfer of Property Act, Exchange.ppt

Section 118-122

1. Exchange
Section 118-122

2. Section 118. Exchange
•When two persons mutually transfer the
ownership of one thing for the ownership
of another, neither thing or both things
being money only, the transaction is called
an ‘exchange’.
•A transfer of property in completion of an
exchange can be made only in a manner
provided for the transfer of such property
by sale.

3. Essentials
1.There must be a minimum of two parties and
two properties, one each belonging to each of
them.
2.There have to be a mutual transfer of these
properties.
3.Property can be exchanged with either
movable or immovable property;
4.No other consideration should be involved
besides these properties.
5.Only money can also be exchanged mutually.

4. •Section 119: Right of party deprived of
thing received in exchange.
•Section 120: Rights and liabilities of
Parties.
•Section 121: Exchange of Money.

5. 119. Right of party deprived of
thing received in exchange
If any party to an exchange or any person claiming
through or under such party is by reason of any defect in
the title of the other party deprived of the thing or any part
of the thing received by him in exchange, then, unless a
contrary intention appears from the terms of the
exchange, such other party is liable to him or any person
claiming through or under him for loss caused thereby, or
at the option of the person so deprived, for the return of
the thing transferred, if still in the possession of such
other party or his legal representative or a transferee
from him without consideration.

6. 120. Rights and liabilities of
parties
Save as otherwise provided in this Chapter, each
party has the rights and is subject to the liabilities
of a seller as to that which he gives, and has the
rights and is subject to the liabilities of a buyer as
to that which he takes.

7. 121. Exchange of money
On an exchange of money, each party thereby
warrants the genuineness of the money given by
him.