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 manner provided for the transfer of such property by sale. The essential characteristics of every transaction in the nature of an exchange is that it must be a transfer of a thing for another thing and both or either of these things may be movable or immovable. In other words, it is a transfer of a thing for another thing and both or either of these things may be movable or immovable property. The difference between a sale and an exchange is that in case of a sale the price is paid in money while in exchange one specific property is transferred for another.

The term ‘exchange’ is defined under section 118 and when two persons mutually transfers the ownership of one thing for the ownership of another, the transaction is called an exchange. The transfer of property in completion of an exchange can be made only in manner provided for the transfer of such property by sale. The transfer of ownership implies that the proprietary rights pass in their full sense and absolutely to the parties to the exchange. The exchange also pr- supposes the fact of delivery of possession of the properties under the exchange to the parties to the exchange. It is equally Important to mention here that an exchange is a transaction by which a party acquires property in which he had no interest before and for a valid exchange there must be a physical delivery of the property to the parties and each party to the exchange has the rights and is subject to the liabilities of seller as to that which he takes. If the real owner of a property exchanged the property and obtained another property in the name of the wife, who was a Binamidar; whether the property so received was in the name of husband or wife made no difference for the purpose of section 118, and it must be held that it was a deed of 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 intension 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. Also each party has the right and is subject to liabilities of a buyer.

Reference:

  1. The Transfer of Property Act – Dr. R. K. Sinha – Central Law Agency
  2. https://taxguru.in  

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

IF YOU ARE INTERESTED IN PARTICIPATING IN THE SAME, DO LET ME KNOW.

Do follow me on FacebookTwitter  Youtube and Instagram.

The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems at secondinnings.hr@gmail.com

In the year 2021, we wrote about 1000 Inspirational Women In India, in the year 2022, we would be featuring 5000 Start Up Stories.

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