Also known as: permutations · permutatio · exchange · substitution
Written by attorneys · grounded in primary & secondary sources — see below
A civil law term denoting barter or exchange of property or rights.
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Piper Patel and Pearl Porter agreed to swap two parcels after both believed the parcels were free of easements. When an undisclosed easement surfaced on Pearl's parcel, the material effect on the agreed exchange of performances allowed Piper to avoid the agreement. The court treated the transaction as a permutation subject to rescission under mutual mistake principles.
Preston Pratt acquired new equipment during marriage using proceeds from his premarital tools. The court classified the equipment as individual property because it resulted from a permutation of other individual assets. This preserved its separate character under the uniform act.
Pablo Perez converted a shipment of traded wheat belonging to Portia Price. Because wheat prices fluctuated on the exchange, the court awarded the highest replacement value within a reasonable replacement window. The measure reflected the economic reality of the forced permutation of the commodity.
The trustee of Prosperity Investments' trust exchanged raw land for developed parcels to improve liquidity. The uniform code authorized the trustee to change the character of trust property through such a permutation. Beneficiaries could not object because the action fell within the enumerated powers.
Two co-owners effected partition by voluntary exchange of conveyances. The interests acquired pursuant to such deeds depended upon the several powers to transfer their interests in the affected land. The court recognized the permutation as valid under the rule governing voluntary exchanges.
The corporation sold, conveyed, and exchanged all or any part of its property. The model act granted authority to dispose of assets through such a permutation. Shareholders could not object because the action fell within the enumerated corporate powers.
It denotes barter or exchange of property or rights between parties.
Supporting sources
…of negotiable paper and would strike a fatal blow at ordinary banking and commercial practices that rely upon renewal and substitution of negotiable securities for debt. The authorities both in England and in many American courts sustain the rule that a holder taking a negotiable instrument in payment of a pre-existing…