6
Question
PRINCIPLE: Where there is transfer of ownership of one thing for the ownership of some other thing, it is called exchange; while transfer of ownership for consideration of money is called sale, whereas, without consideration it becomes gift.
FACTS: 'A' transfers his house worth Rs. 50 lakhs to 'B' for a shopping building worth the same amount, as consideration, from 'B'.
PRINCIPLE: Where there is transfer of ownership of one thing for the ownership of some other thing, it is called exchange; while transfer of ownership for consideration of money is called sale, whereas, without consideration it becomes gift.
FACTS: 'A' transfers his house worth Rs. 50 lakhs to 'B' for a shopping building worth the same amount, as consideration, from 'B'.
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Solution
The correct option is C The transaction is an exchage
Section 118 of transfer of property act 1882 says that when the ownership of two things is exchanged and no money consideration is involved then such a dealing is called as exchange of property. Here A is transferring his house to B in exchange of a shopping building worth same price, hence this is exchange. The correct answer is C.
Section 118 of transfer of property act 1882 says that when the ownership of two things is exchanged and no money consideration is involved then such a dealing is called as exchange of property. Here A is transferring his house to B in exchange of a shopping building worth same price, hence this is exchange. The correct answer is C.
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