Section 118: “Exchange” defined

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2 questions in 15 of our papers cite Section 118. Try these from the free papers:

1. 1. Which of the following transactions is an 'exchange' as defined in Section 118 of the Transfer of Property Act, 1882?

   A.A lets his house to B for five years, and B lets his shop to A for five yearsB.A transfers his house to B, and B in return pays A a sum of money as the agreed priceC.A transfers his house to B without consideration, and B accepts the transferD.A transfers his house to B, and B in return transfers his agricultural land to A
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2. 2. A agrees with B to exchange A's agricultural land worth Rs 3 lakh for B's house worth Rs 5 lakh. Under Section 118 of the Transfer of Property Act, 1882, the transfers in completion of this exchange:

   A.can be made by a single unregistered deed attested by at least two witnessesB.can be made only in the manner provided for the transfer of such property by saleC.need a registered instrument only for the house, as it is the more valuableD.can be made by mutual delivery of possession, since no money price at all is involved
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