EXCHANGE: 118-121 SAJAD HUSSAIN LL.

B-V(B)

SECTION:118 Exchange defined:

When two persons mutually transfer the ownership of one thing for the ownership of another,
neither thing or both thing being money only, the transaction is called an “Exchange”.

An exchange is a transfer of property in which two persons mutually transfer the ownership of
one property for the ownership of another. It means at the same time the same person is
transferor and transferee as well Or Seller and buyer Or Offer-or and Offeree , etc
OR
An exchange is a mutual transfer between two persons of the ownership of properties but either
both the things should be money or neither of them should be money.

ESSENTIALS ELEMENTS:
i. Two parties
ii. Mutual transfer
iii. Transfer of ownership of property
iv. Property may be movable or immovable
v. Only money cannot be given in exchange (otherwise it will be sale).
vi. A part of consideration is money and part land is possible.

ILLUSTRATIONS:
i. Sajad exchanges his notes with Afaque for Transfer of property Book. OR
ii. Sajad Exchanges his house, located in Karachi Defence , with Afaque for his house, located
in Hyderabad, and took some money.
iii. Faseeh Exchanges a dozen of eggs for a dozen of oranges with Sajad.
REGISTRATION HOW MADE: The procedure of registration is same as that of sale.

Barter is a direct trade without the use of money, while exchange involves the use of money as
a medium of trade.
NOTE: In case of exchange the question of pre-emption does not arise.

SECTION-119: Right of party deprived of thing received in exchange:

If a party is deprived of the thing he received in the exchange due to a defect in the title of the
other party, he has certain rights or remedies given below:
Remedy to deprived party:
i. Recover compensation
ii. Take back the thing given by him:
In case, when the property is in possession of other party.

SECTION-120: Rights and liabilities of the parties:

As both parties at the same time are seller and buyer therefore both have same rights and
liabilities.
Rights of Buyer ( Liabilities or duties of Seller) :
a) To disclose material defects in property to be Exchanged to buyer
b) To produce all documents of title to buyer on his request.
c) To answer all relevant questions of buyer with best of his knowledge.
d) To execute proper conveyance
e) To take care of property b/w dates of sale and delivery of possession of property.
f) To give possession of property to buyer.
g) To pay all public charges and agent accrued due up to the date of sale.

SECTION-121: Exchange of money:

When exchanging money, both parties guarantee the money is real.
It's like a handshake, ensuring each side gives and receives genuine currency.