118. “Exchange” defined.—When two persons mutually transfer the ownership of one
thing for the ownership of another, neither thing or both things being money only, the
transaction is called an “exchange”.
A transfer of property in completion of an exchange can be made only in manner
provided for the transfer of such property by sale.
3
[119. Right of party deprived of thing received in exchange.—If any party to an
exchange or any person claiming through or under such party is by reason of any defect in the
title of the other party deprived of the thing or any part of the thing received by him in
exchange, then, unless a contrary intention appears from the terms of the exchange, such other
party is liable to him or any person claiming through or under him for loss caused thereby, or
at the option of the person so deprived, for the return of the thing transferred, if still in the
possession of such other party or his legal representative or a transferee from him without
consideration.]
120. Rights and liabilities of parties.—Save as otherwise provided in this Chapter,
each party has the rights and is subject to the liabilities of a seller as to that which he
gives, and has the rights and is subject to the liabilities of a buyer as to that which he
takes.
121. Exchange of money.—On an exchange of money, each party thereby warr ants
the genuineness of the money given by him.