Exchange

Exchange

• 1.
  EXCHANGE According to Transferof Property Act, 1882 Submitted By: Name: Nagesh Sawant Enrolment No.:16BSP1456 Course: Legal environment of Business Semester - III Section: K College:ICFAI Business School,Powai,Mumbai
• 2.
  What is meantby EXCHANGE? • Exchange according to Transfer of Property act, 1882. • Section 118 of the Transfer of Property Act defines “exchange” as follows: “When two persons, mutually transfer the ownership of one thing in exchange for the ownership of another, neither thing or, both things being money only, such a transaction is called an “exchange.”
• 3.
  CHARACTERISTIC FEATURES OF EXCHANGE •Transfer of ownership: The ownership of one party must be exclusive of the ownership of the other. • Properties can be movable: The definition of exchange is not limited to immovable property. • Exchange includes Barter: Exchange is not only exchange of lands but Barter of Goods. • Mode of transfer: Money in one form may be exchanged for money in another form.
• 4.
  Terms related toEXCHANGE under Transfer of Property Act, 1882 • 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. • 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. • Exchange of money: On an exchange of money, each party thereby warrants the genuineness of the money given by him.
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  Example of EXCHANGE ABTRANSFERS A HOUSE WORTH RS.1500/- A B TRANSFERS A FIELD WORTH RS.1000/- AND RS.500 CASH/- SUCH TYPE OF TRANSACTION IS TERMED AS “EXCHANGE”
• 6.
  WHAT IS ADEED OF EXCHANGE/EXCHANGE DEED • Description of deed • Date of execution • Parties to deed • Recitals • Covenants • Testimonium • Testatum • Operative words • Parcels • Completion transaction • Execution Contents of Deed of Exchange
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  Pro forma DEEDOF EXCHANGE
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  CONCLUSION • Where twopersons mutually transfer the ownership for ownership of another, the transaction is known as exchange. • As the exchange is involved under the transfer of property act there are certain rights and liabilities of the parties arise, and the when money is paid for equality of exchange, there is no charge for the money so paid. • Thus exchange is transfer of one thing for another thing and both the thing and either of the things may be movable or immovable.