Definition of EXCHANGE


EXCHANGE

com. law. This word has several significations.

2. - 1. Exchange is 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 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.

3. - 2. The price which is paid in order to obtain such transfer, is also
known among merchants by the name of exchange, as, exchange on England is
five per cent. See 4 Wash. C. C. R. 307. Exchange on foreign money is to be
calculated according to the usual rate at the time of trial. 5 S. & R. 48.

4. - 3. Barter, (q. v.) or the transfer of goods and chattels for other
goods and chattels, is also known by the name of exchange, though the term
barter is more commonly used.

5. - 4. The French writers on commercial law, denominate the profit which
arises from a maritime loan, exchange, when such profit is a per centage 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. Hall on Mar.
Loans, 56, n., and the articles Interest, Maritime, Premium.

6. - 5. By exchange is also meant, the place where merchants, captains of
vessels, exchange agents and brokers, assemble to transact their business.
Code de Comm. art. 71.

7. - 6. According to the Civil Code of Louisiana, art. 1758, exchange
imports a reciprocal contract, by which. the parties enter into mutual
agreement. 14 Pet. 133. Vide the articles. Bills of Exchange, Damages on
Bills of Exchange and Reexchange. Also Civ. Code of Lo. art. 2630.


Source: Bouviers Law Dictionary 1856 Edition

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