Transfer Of Property Act - Study Mode

[#591] The provisions relating to "Onerous gift" have provided under Transfer of Property Act, 1882 in
Correct Answer

(A) Section 127

Explanation

Solution: Onerous Gift: An onerous gift refers to a gift that comes with certain obligations, liabilities, or burdens attached to it. Under the Transfer of Property Act, 1882, if a gift consists of both beneficial and burdensome properties, the donee must either accept or reject the entire gift. The donee cannot choose to accept only the beneficial part and reject the burdensome part. Correct Answer: Section 127 The concept of an onerous gift is covered under Section 127 of the Transfer of Property Act, 1882. This section states that if a gift includes properties that impose obligations or liabilities, the donee has the right to either accept the whole gift with its burdens or reject it entirely. However, if the donee is a minor, he is not bound by such an onerous gift, and upon attaining majority, he may choose to accept or reject it. Explanation: 1. If a person gifts multiple properties to another person, where some properties are beneficial while others carry burdens, the recipient must accept or refuse the whole gift. 2. A minor donee is not bound to accept an onerous gift, and after attaining majority, they have the option to accept or disclaim it. 3. The principle behind this provision is fairness, preventing donees from cherry-picking only the profitable parts of a gift while discarding the burdensome ones. Thus, the correct answer is Option A: Section 127 .

[#592] Which one of the following sections of Transfer or Property Act, 1882 deals with "Rule Against Perpetuity"?
Correct Answer

(B) Section 14

Explanation

Solution: Rule Against Perpetuity: The Rule Against Perpetuity is a legal principle that prevents property from being tied up indefinitely beyond a certain period. This rule ensures that property remains transferable and does not remain restricted for an unreasonably long duration, thereby promoting free circulation and transferability of property rights. Correct Answer: Section 14 The Rule Against Perpetuity is provided under Section 14 of the Transfer of Property Act, 1882. This section states that no property can be transferred in a way that delays absolute ownership beyond the lifetime of one or more persons living at the time of the transfer, plus a further period of eighteen years (representing the possible minority of an unborn beneficiary). Explanation: 1. The purpose of this rule is to prevent property from being indefinitely controlled by past generations, ensuring that future generations have access to and can deal with property freely. 2. A transfer that violates this rule becomes void concerning the portion that exceeds the permissible period. 3. The maximum permissible period for which property can be tied up includes the lifetime of existing persons plus 18 years (accounting for a potential minor inheritor). 4. The rule applies to non-testamentary transfers (gifts, settlements, etc.) but does not affect wills or charitable endowments. Thus, the correct answer is Option B: Section 14 .

[#593] A Mortgage by deposit of title deeds is called:
Correct Answer

(C) Equitable mortgage

Explanation

Solution: Equitable Mortgage: An equitable mortgage is a mortgage where the transfer of the property is not registered formally, but instead, the lender holds the title deeds as security for the loan. Explanation of Correct Option (C): A mortgage by deposit of title deeds is a type of equitable mortgage. This is because the actual transfer of ownership of the property isn't legally documented through a formal deed of mortgage. Instead, the lender possesses the title deeds as evidence of the mortgage agreement, giving them an equitable interest in the property. The borrower retains legal ownership, but the lender’s possession of the title deeds provides a strong claim should the borrower default on the loan. Why other options are incorrect: Option A: Anomalous mortgage – This is not a standard legal term used to describe a mortgage created by depositing title deeds. An anomalous mortgage may exist in specific jurisdictions but isn't the standard terminology for a mortgage created by the deposit of title deeds. Option B: English mortgage – An English mortgage involves an absolute transfer of ownership to the mortgagee (lender), with a condition that the ownership is transferred back to the mortgagor (borrower) upon repayment of the loan. This differs significantly from a deposit of title deeds where the transfer of ownership is not absolute. Option D: Usufructuary mortgage – A usufructuary mortgage involves the lender having the right to enjoy the fruits or income generated by the property during the mortgage tenure. While it's a type of mortgage, it doesn't directly relate to a mortgage created by depositing title deeds. The focus is on the use and income from the property, not simply the deposit of the title deeds as collateral.

[#594] The object of section 57 of the Transfer of Property Act, 1882 is to:
Correct Answer

(A) Facilitate the sale of encumbered estates by taking the encumbrance off the title before sale

Explanation

Solution: Section 57 of the Transfer of Property Act, 1882, deals with the sale of encumbered property . An encumbered estate is a property burdened with some charge or liability, such as a mortgage, lien, or other encumbrance that affects its ownership or transfer. The primary objective of Section 57 is to facilitate the sale of such encumbered properties by providing a mechanism to deal with the existing encumbrances. Option A correctly states the object of Section 57. The section aims to simplify the process by allowing the sale to proceed even with existing encumbrances, often by providing a way for the buyer to acquire a clear title, free from these burdens. This is done through procedures outlined in the Act, which deal with the payment or discharge of the encumbrances from the sale proceeds. Option B is incorrect as it directly contradicts the purpose of Section 57. Option C is incorrect because it incorrectly supports the false statement in Option B. Option D is also incorrect as Option A accurately describes the object of Section 57.

[#595] Transfer of Property Act:- The doctrine of part performance is dealt in.
Correct Answer

(D) Section 53-A of Transfer of Property Act

Explanation

Solution: Doctrine of Part Performance: The Doctrine of Part Performance is a legal principle that protects a transferee who has taken possession of a property and acted upon an agreement, even if the formal requirements for a valid transfer have not been fulfilled. This doctrine prevents the transferor from refusing to complete the transfer when the transferee has already performed their part of the agreement. Correct Answer: Section 53-A The Doctrine of Part Performance is dealt with under Section 53-A of the Transfer of Property Act, 1882. This section provides that if a person has taken possession of immovable property based on a contract to transfer, and has performed or is willing to perform their part of the contract, the transferor cannot deny the transferee’s rights by claiming that the transfer was not completed through a registered deed. Explanation: 1. This doctrine protects the transferee when an agreement to transfer property is not formally registered, provided the transferee has acted upon it. 2. The transferee must have taken possession of the property or continued in possession and performed their obligations under the contract. 3. The transferor is then barred from asserting their ownership against the transferee, preventing unfair revocation of the transfer. 4. However, this section does not grant ownership to the transferee but merely prevents the transferor from enforcing their own title against the transferee in contradiction to the contract. 5. The doctrine applies only when the agreement is in writing, signed by the transferor, and clearly specifies the terms of the transfer. Thus, the correct answer is Option D: Section 53-A of the Transfer of Property Act .