Exchange: property for property
Also available in: हिंदी
Exchange turns on mutual transfers of ownership, not simply the absence of a cash payment.
Section 118 defines exchange where two persons mutually transfer ownership of one thing for ownership of another, neither thing or both things being money only. The provision says completion follows the manner provided for a sale of the relevant property; a swap is not a shortcut around required formalities.
Section 119 addresses deprivation caused by a defect in the other party's title, subject to its conditions and any contrary intention in the contract. Section 120 generally places each party in the position of seller for what they give and buyer for what they receive. Section 121 separately addresses an exchange of money.
Fictional example
Farah and Arun propose exchanging two plots. They still need to consider the sale-mode formalities under section 118, their respective title and the rights that section 119 may supply if a title defect deprives one of the received plot.
Read the provisions
Read the full chapter →Limits and cautions
- Do not infer equal valuation, a tax exemption or reduced stamp duty merely because a transaction is called an exchange.
Study check
Chapter 6: study check
Choose an answer, then check it. Scoring stays in your browser and every explanation links to the statutory text.
Connect with contract law
Read the Indian Contract Act on capacity, consent and lawful objects alongside the property provisions.
Original educational explanations and fictional examples; not individual legal advice or property-title verification.
Official statutory reference: Government of India reference, hosted by Andhra Pradesh High Court