Question

Difference between sale and exchange under transfer of property act

Answer 1

Sale refers to the transfer of ownership for a price paid or promised in full or partly paid and partly promised. The exact definition of sale is provided under Section 54 of Transfer of Property Act, 1882.  

Exchange refers to the mutual transfer of ownership of possessions between two persons for ownership of the other person’s possessions. The exact definition of exchange is provided under Section 118 of Transfer of Property Act, 1882.

Answer 2

Sale

Section 54 of the Transfer of Property Act 1882 defines the sale of immovable property. According to it, sale refers to a transfer of ownership in exchange for a price which is paid or promised or part paid and part promised.

Exchange

The definition of exchange is given in Section 118 of the same Act. According to it, a transaction in which two persons mutually transfer the ownership of one thing for the ownership of another, where neither thing or both things are only money is called an exchange.