Exchange

In Commercial Law. A negotiation by which one person transfers to another funds which he has in a certain place, either at a price agreed upon, or which is iixed by commercial usage. This transfer is made by means of an instrument which represents such funds, and is well known by the name of a "bill of exchange." The price above the par value_of the funds so transferred is called the "premium" of exchange, and if under that value the difference is called the "discount"; either being called the "rate" of exchange. The rate of exchange, the difference in value of the same amount of money in different places, is sometimes known as "exchange." ——Of Property. An exchange of chattels is a transfer thereof for other chattels. This is commonly called "barter." Exchange of real estate is a mutual grant of equal interests in land, the one in consideration of the other. 2 Bl. Comm. 323; Litt. 62; Shep. Touch. 289; Watk. Conv. It is said that exchange in the United States does not differ from bargain and sale. 2 Bouv. Inst, note 2055, At Common Law. Five circumstances are necessary to an exchange: That the estates given be equal; that the word excambium, or exchange, be used, which cannot be supplied by any other words, or described by circumlocution; that there be an execution by entry or claim in the life of the parties; that, if it be of things which lie in grant, it be by deed; that, if the lands lie in several counties, or if the things lie in grant, though they be in one county, it be by deed indented. In practice this mode of conveyancing is nearly obsolete. See Cruise, Dig. tit.

32; Comyn, Dig.; Co. Litt. 51; 1 Washb. Real Prop. 159; Hardin (Ky.) 593; 1 N. H. 65; 3 Har. & J. (Md.) 361; 3 Wils. 489; Watk. Conv. bk. 2, c. 5; 3 Wood, Conv. 243.