Legal 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.Factual Situation: A transfers his house worth ` 50 lakhs to B for a shopping building worth the same amount, as consideration, from B. (CLAT 2014)

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Each question consists of legal principle(s) (hereinafter referred to as 'principle') and facts. Such proposition may or may not be true in the real and legal sense, yet you have to conclusively assume them to be true for the purposes of this section. You have to apply the principles to the given facts to arrive at the most reasonable conclusion. Only one of the alternatives, i.e., (A), (B), (C), or (D) is the most reasonable conclusion. Remember: you must not rely on any principle except the principles that are given for every question.

Legal 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.<br>Factual Situation: A transfers his house worth ` 50 lakhs to B for a shopping building worth the same amount, as consideration, from B. (CLAT 2014)






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