Transfer By Act Of Parties MCQ Quiz - Objective Question with Answer for Transfer By Act Of Parties - Download Free PDF

The correct answer is Suit must be collusive

Key Points

• Under Section 52 of the Transfer of Property Act, 1882, the doctrine of "Lis Pendens" applies to prevent the transfer of immovable property when a legal dispute involving that property is ongoing.
  • The rule ensures that the outcome of a pending litigation is not defeated by transfer of property during its pendency.
• Essential Conditions for Lis Pendens:
  • There must be a pendency of a suit or proceeding.
  • The suit must be in a competent court.
  • The dispute must relate to a right in immovable property.
  • Transfer must affect the rights of the other party in the suit.

Additional Information

• Suit must be collusive – Not an essential condition.
  • In fact, if the suit is collusive, the doctrine does not apply.

The correct answer is Where the transfer is by way of lease

Key Points

• Section 12 of the Transfer of Property Act, 1882 deals with:
  • Condition restraining alienation –
    • It states that where a property is transferred absolutely, the transferee cannot be absolutely restrained from parting with or disposing of his interest.
• But this section does not apply to leases, because:
  • In a lease, the lessor retains ownership, and
  • Conditions restricting sub-letting or assignment are commonly allowed in leases.

Additional Information

• Sale – Section 12 applies; an absolute restraint on resale is void.
• Gift – Applies; donee can’t be fully restrained from transferring.
• Exchange – Applies similarly to sale and gift.

The correct answer is Section 5

Key Points

• Section 5 of the Transfer of Property Act, 1882 defines "Transfer of Property" as:
  • "An act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself and one or more other living persons."
• This includes individuals, companies, associations, or body of individuals.

Additional Information

• Section 6 – Lists what may not be transferred.
• Section 7 – Deals with persons competent to transfer.
• Section 8 – Explains operation of transfer (what rights and liabilities pass on).

The correct answer is Act of parties and decree of the court

Key Points

• The right of redemption is the mortgagor’s legal right to redeem (get back) the mortgaged property by repaying the mortgage money, at any time before the mortgage is foreclosed or sold.
• Extinguishment of Right of Redemption:
  • According to law, this right can be extinguished only by:
  • Act of parties (e.g., sale by mortgagor to mortgagee or third party), or
  • Decree of a court (e.g., in a foreclosure or redemption suit).
• Other options explained:
  • Transferring of right to outsider – Not by itself sufficient to extinguish the right unless it's a valid and complete transfer with intention to waive redemption.
  • Technicalities of facts – The right is a substantive right and cannot be defeated merely by procedural or technical reasons.

Additional Information

• Transferring of right to outsider – Incorrect. Alone, this does not extinguish redemption unless rights are formally relinquished.
• Technicalities of facts – Incorrect. The right cannot be defeated by procedural or technical defects.
• All of the above – Incorrect. Only act of parties or court decree can extinguish the right.

The correct answer is feeding the grant by estoppel

Key Points

• Section 43 – "Transfer by unauthorized person who subsequently acquires interest in property transferred":
• This section deals with a transferor who fraudulently or erroneously represents that he is authorized to transfer a property, and later acquires an interest in that property.
• The transferee then has the option to enforce the transfer using the doctrine of "feeding the grant by estoppel."
• Essence of the Principle:
• If a person sells property without having title but later acquires title, the benefit of that title will pass to the transferee.
• It protects the transferee who acted on good faith and reliance.
• Example:
• A sells property to B claiming ownership, but he doesn’t own it. Later A inherits or acquires that property. B can ask the court to enforce the original transfer using Section 43.

Additional Information

• Actionable claim – Incorrect. It refers to a right to debt or claim, not applicable to Section 43.
• Clog on redemption – Incorrect. This refers to an impediment to redeeming mortgaged property, not misrepresentation in transfers.
• Subrogation – Incorrect. This applies in mortgage law where a third party steps into the shoes of the creditor after payment.

The correct answer is Section 81.

Key Points

• Section 81 of the Transfer of Property Act, 1882, provides for Marshalling securities.
• It states that —If the owner of two or more properties mortgages them to one person and then mortgages one or more of the properties to another person, the subsequent mortgagee is, in the absence of a contract to the contrary, entitled to have the prior mortgage debt satisfied out of the property or properties not mortgaged to him, so far as the same will extend, but not so as to prejudice the rights of the prior mortgagee or of any other person who has for consideration acquired an interest in any of the properties.

The correct answer is option 2.Key Points

• Section 43 of the Transfer of Property Act, 1882, encompasses the doctrine of "estoppel by deed," also known as "Feeding the Grant by Estoppel."
• This doctrine applies when a person who does not have the authority to transfer a property represents that they do and proceeds with the transfer. If that person subsequently acquires the interest they claimed to have, the interest automatically transfers to the transferee. This legal principle prevents the transferor from denying the validity of the initial transfer once they obtain the interest.
• Section 43 of Transfer of Property Act 1882 deals with Transfer by unauthorised person who subsequently acquires interest in property transferred.
• Where a person fraudulently or erroneously represents that he is authorised to transfer certain immovable property and professes to transfer such property for consideration, such transfer shall, at the option of the transferee, operate on any interest which the transferor may acquire in such property at any time during which the contract of transfer subsists.
• Nothing in this section shall impair the right of transferees in good faith for consideration without notice of the existence of the said option.

The correct answer is option 2.Key Points

•  Section 19 of Transfer of Property Act 1882 deals with Vested interest.
• Where, on a transfer of property, an interest therein is created in favour of a person without specifying the time when it is to take effect, or in terms specifying that it is to take effect forthwith or on the happening of an event which must happen, such interest is vested, unless a contrary intention appears from the terms of the transfer.
• A vested interest is not defeated by the death of the transferee before he obtains possession.
• Explanation.—An intention that an interest shall not be vested is not to be inferred merely-from a provision whereby the enjoyment thereof is postponed, or whereby a prior interest in the same property is given or reserved to some other person, or whereby income arising from the property is directed to be accumulated until the time of enjoyment arrives, or from a provision that if a particular event shall happen the interest shall pass to another person.

The correct answer is option 2.Key Points

• Section 11 of Transfer of Property Act 1882 deals with Restriction repugnant to interest created.
• Where, on a transfer of property, an interest therein is created absolutely in favour of any person, but the terms of the transfer direct that such interest shall be applied or enjoyed by him in a particular manner, he shall be entitled to receive and dispose of such interest as if there were no such direction.
• Where any such direction has been made in respect of one piece of immoveable property for the purpose of securing the beneficial enjoyment of another piece of such property, nothing in this section shall be deemed to affect any right which the transferor may have to enforce such direction or any remedy which he may have in respect of a breach thereof. 

The correct answer is Section 53 A.

Key Points

• Section 53 A of the Transfer of Property Act, 1882, provides for Part performance.
• It states that —Where any person contracts to transfer for consideration any immovable property by writing signed by him or on his behalf from which the terms necessary to constitute the transfer can be ascertained with reasonable certainty,
  and the transferee has, in part performance of the contract, taken possession of the property or any part thereof, or the transferee, being already in possession, continues in possession in part performance of the contract and has done some act in furtherance of the contract, and the transferee has performed or is willing to perform his part of the contract,
  then, notwithstanding that, or, where there is an instrument of transfer, that the transfer has not been completed in the manner prescribed therefor by the law for the time being in force, the transferor or any person claiming under him shall be debarred from enforcing against the transferee and persons claiming under him any right in respect of the property of which the transferee has taken or continued in possession, other than a right expressly provided by the terms of the contract:
  Provided that nothing in this section shall affect the rights of a transferee for consideration who has no notice of the contract or of the part performance thereof.

The correct answer is option 1.

Key Points

• This is principally defined under Section 20 of the Act, which deals with the transfer of interest to an unborn person.
• According to this provision, an interest created for the benefit of an unborn person vests in him upon his birth, unless a contrary intention appears from the terms of the transfer.
• This means that the unborn person, upon his birth, acquires a legal right to the property, and this right is termed 'vested interest'.
• However, it is essential to clarify that while this vested interest is acquired at birth, the actual enjoyment of the property might be postponed to a future date, depending on the conditions set out in the transfer.
• Furthermore, the Act requires, as detailed in Section 13, that for a transfer to an unborn person to be valid, it must be made through a trust.
• The property must be transferred to a trustee(s) who holds it for the benefit of the unborn person.
• The property or interest therein must be explicitly transferred so that it vests in the unborn upon their birth, following the cessation of any prior interest created by the same transfer.

The correct answer is option 3.

Key Points

• Section 6 What may be transferred
• Property of any kind may be transferred, except as otherwise provided by this Act or by any other law for the time being in force.
  • (a) The chance of an heir-apparent succeeding to an estate, the chance of a relation obtaining a legacy on the death of a kinsman, or any other mere possibility of a like nature, cannot be transferred.
  • (b) A mere right of re-entry for breach of a condition subsequent cannot be transferred to anyone except the owner of the property affected thereby.
  • (c) An easement cannot be transferred apart from the dominant heritage.
  • (d) An interest in property restricted in its enjoyment to the owner personally cannot be transferred by him.
  • (dd) A right to future maintenance, in whatsoever manner arising, secured or determined, cannot be transferred.
  • (e) A mere right to sue cannot be transferred.
  • (f) A public office cannot be transferred, nor can the salary of a public officer, whether before or after it has become payable.
  • (g) Stipends allowed to military, naval, air-force and civil pensioners of the government and political pensions cannot be transferred.ransfer of Property Act, 1882

The correct answer is Option 1. 

Key Points

• Section 7 of the Transfer of Property Act deals with the competency of persons to transfer property. Here's an explanation of the section.
• According to Section 7:
  • Competence to Transfer: Any person who is competent to contract (legally capable of entering into a contract) and who owns transferable property is competent to transfer that property.
  • Authorization to Dispose of Property: Additionally, any person who is authorized to dispose of transferable property, even if it's not their own, is also competent to transfer such property.
  • Extent and Manner of Transfer: These competent persons can transfer the property wholly or partially, and the transfer can be absolute or conditional. The transfer must adhere to the circumstances, extent, and manner allowed and prescribed by the law in force at that time.

The correct answer is option 1.Key Points

• Section 21 of Transfer of Property Act 1882 deals with Contingent interest.
• Where, on a transfer of property, an interest therein is created in favour of a person to take effect only on the happening of a specified uncertain event, or if a specified uncertain event shall not happen, such person thereby acquires a contingent interest in the property. Such interest becomes a vested interest, in the former case, on the happening of the event, in the latter, when the happening of the event becomes impossible.
• Exception.—Where, under a transfer of property, a person becomes entitled to an interest therein upon attaining a particular age, and the transferor also gives to him absolutely the income to arise from such interest before he reaches that age, or directs the income or so much thereof as may be necessary to be applied for his benefit, such interest is not contingent.

The correct answer is option 3.Key Points

•  Section 5 of Transfer of Property Act 1882 deals with “Transfer of property” defined.
• In the following sections “transfer of property” means an act by which a living person conveys property, in present or in future, to one or more other living persons, or to himself, or to himself and one or more other living persons; and “to transfer property” is to perform such act.
• In this section “living person” includes a company or association or body of individuals, whether incorporated or not, but nothing herein contained shall affect any law for the time being in force relating to transfer of property to or by companies, associations or bodies of individuals.