Section 118 to section 121 of the transfer of property 1882 speaks about the exchange. Section 118 defines exchange, while section 119 of the said Act speaks about Right of party deprived of the thing received in exchange. Section 120, provides the rights and liabilities of parties. Section 121 of the TPA, speaks about the exchange of money.
What is the exchange?
Exchange is an act of giving one thing and receiving another (especially of the same kind) in return. In simple words, give something and receive something of the same kind in return. The changing of money to its equivalent in the currency of another country.
2) Exchange -
According to section 118 of transfer of property Act 1882, 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.
3) Right of party deprived of thing received in exchange -
As per section 119 of the said act, 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.
4) Rights and liabilities of parties -
According to section 120 of the transfer of property Act, 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.
5) Exchange of money -
Section 121 of the transfer of property Act deals with exchange of money, On an exchange of money, each party thereby warrants the genuineness of the money given by him.