Section 119 of TPA : Section 119: Right Of Party Deprived Of Thing Received In Exchange

Explanation using Example

Imagine that Rita and Sam enter into an exchange agreement where Rita gives Sam her antique piano in exchange for Sam's vintage car. A few weeks later, it is discovered that the vintage car Sam provided was actually stolen property and the rightful owner claims it back, leaving Rita without the car. According to Section 119 of the Transfer of Property Act, 1882, unless the exchange agreement specifically stated otherwise, Sam would be liable to compensate Rita for her loss. Rita could either demand compensation for the value of the antique piano she gave away or ask for the piano to be returned to her if Sam still has it or if he has not transferred it to someone else for a consideration.