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EXCHANGE. In Commercial Law. A ne gotiation by which one person transfers.• to another funds which he has in a certain place, either• at a price agreed upon or which is fixed 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 (q. v.). 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 par of exchange is the value of the money of one country in that of another, and is either real or nominal. The nominal par is that which has,been fixed by law or usage, and, for the sake of uniformity, is not altered, the rate of exchange alone fluctuating. The real par is that based on the weight and fineness of the coins of the two countries, and fluctuates with changes in the coinage. The nominal par of exchange in this country on England, settled in 1799 by act of congress, was four dollars and for ty-four cents for the pound sterling; but by successive changes in the coinage this value has been increased, the real mint par at present being The cour8e of ex change means the quotations for any given time.

The transfer of goods and chattels for oth er goods and chattels of equal value. This is more commonly called barter. Where a party deposits wheat with a mill company, expecting to receive a proportionate amount of flour, it constitutes an exchange and not a sale; Martin v. Mill Co., 49 Mo. App. 23. One cannot, as having been defrauded there by, rescind an exchange of property, without tendering a return of his property to the other, unless it is absolutely worthless ; Johnson v. Flynn, 97 Mich. 581, 56 N. W. 939., The distinction between a sale and ex change of property is rather one of shadow than of substance. In both cases the title to property is absolutely transferred, and the same rules of law are applicable to the transaction, whether the consideration of the contract is money or by way of barter. It

can make no essential difference in the rights and obligations of parties that goods and merchandise are transferred and paid for by other goods and merchandise instead of by money, which is but the representative of value or property ; Com. v. Clark, 14 Gray (Mass.) 372.

The profit which arises from a maritime loan, when such profit is a percentage on the money lent, considering it in the light of money lent in one place to be returned in another, with a difference in amount in the sum borrowed and that paid, arising from the difference of time and place. The term is commonly used in this sense by French writers. Hall, Mar. Loans 56, n.

The place where merchants, captains of vessels, exchange-agents, brokers, etc., assem ble to transact their business. Code de COMM. art. 71. See STOCK EXCHANGE.

In Conveyancing. A mutual grant of equal interests in land, the one in consideration of the other. 2 Bla. Com. 323 ; Littleton 62 ; Shep.. Touchst. 289 ; Digby, It. P. 368. It is said that exchange in the United States does not differ from bargain and sale. 1 Bouvier, Inst. n. 2059.

There are five circumstances necessary to an exchange. That the estates given be equal. That the word efflcambium, or ex change, be used,—which cannot be supplied by any other word, or described by circum locution. That there be an execution by en try 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 thing lie iu 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 ; Com. Dig. ; Co. Litt. 51; 1 Washb. R. P. 159 ; Cass v. Thomp son, 1 N. H. 65, 8 Am. Dec. 36 ; Maydwell v. Carroll, 3 Harr. & J. (Md.) 361 ; Stroff v. Swafford Bros., 79 Ia. 135, 44 N. W. 293 ; Close v. Crossland, 47 Minn. 500, 50 N. W. 694; Williamson v. Woten, 132 Ind. 202, 31 N. E. 791; Gunter v. Leckey, 30 Ala. 591;