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Under section 118 of the Transfer of Property Act, 1882, what is the statutory term for a transaction…

Section 118 calls this reciprocal transfer an exchange. In ordinary speech it can be called barter, but the question asks for the Act's term. A sale under section 54 is a…

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Under section 118 of the Transfer of Property Act, 1882, what is the statutory term for a transaction in which two people transfer ownership of one thing for ownership of another and neither thing is money?

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Answer and explanation

Correct answer C

Section 118 calls this reciprocal transfer an exchange. In ordinary speech it can be called barter, but the question asks for the Act's term. A sale under section 54 is a transfer of ownership in return for a price, while a lease under section 105 transfers a right to enjoy property.

Option feedback

Option A

‘Barter’ is an ordinary-language description. Section 118 uses ‘exchange’ as its legal label.

Option B

A sale requires a price under section 54. This transaction trades ownership of two non-money things.

Option C

Exchange is the term expressly defined by section 118.

Option D

A lease under section 105 transfers a right to enjoy property, rather than reciprocal ownership.

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