Explain the mode of transfer by exchange?
Section 118 provides that an exchange can be made only in the manner provided for the transfer of such property by sale.
Since a sale of immovable property can only be effected by a registered conveyance, an exchange of tangible, immovable property of the value of Rs. 100 and more must be made by registered instrument. In the case of immovable property, an exchange is, usually, made by mutual conveyances. However, it is not necessary that there should be two separate deeds.
A party receives a thing in exchange. However, he is deprived of such thing due to the defective title of the other party. What are the remedies available to the deprived party?
In case a party, receiving a thing in exchange, is deprived of such thing due to a defective title of the other party to the exchange transaction, such deprived party can avail of the remedy that is stated in section 119 of the Act. The deprived party in such a case is entitled to get back the thing that has been given to the other party during transaction, provided it still lies in the possession of the other party.However, if any contrary expression appears, the party is not entitled to such remedy.