Practicing Success

Target Exam

CUET

Subject

Legal Studies

Chapter

Topics of Law

Question:

Transfer of property by exchange can be made by way of __________.

Options:

only sale

only lease

only gift

both sale and gift

Correct Answer:

only sale

Explanation:

When two persons transfer ownership of one thing for the ownership of another, it is called exchange (Section 118 of the TPA). Transfer of property by exchange can be made only by way of sale. The rights and liabilities of the parties to exchange shall be that of the rights and liabilities of the buyer to the extent of receiving and that of the seller to the extent of giving.