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

The correct answer is 

Key Points

• Section 52 deals with the rule of lis pendens — which means "pending lawsuit."
• It states that during the pendency of a suit or proceeding relating to any immovable property, any transfer of that property by the defendant is subject to the result of the suit.
• The section applies to rights in immovable property that are in dispute (pre-existing rights, instant rights, post-transfer rights), ensuring that such transfers do not defeat the legal rights of other parties.
• However, Section 52 does NOT apply to pecuniary (money) rights because it is only concerned with property rights related to immovable property and not debts or monetary claims.

Additional Information

• Option 1. Post transfer rights:Incorrect — Section 52 applies to these, as they relate to the property rights subject to litigation.
• Option 3. Pre-existing rights: Incorrect — Section 52 covers these rights which existed before the transfer.
• Option 4. Instant rights:Incorrect — Section 52 also applies to rights that arise immediately after transfer during pendency of suit.

The correct answer is At the date of transfer

Key Points

• Section 41 of the Transfer of Property Act, 1882 governs the transfer of actionable claims.
• When an actionable claim (a claim to any debt or beneficial interest not in the form of immovable property) is transferred, the transferee (person receiving the claim) takes it subject to all liabilities and equities attached to the claim.
• These liabilities and equities are those existing at the date of transfer — meaning any rights, defenses, or obligations affecting the claim at the exact time the transfer happens.
• This ensures that the transferee cannot claim better rights than the transferor had on that date.
• Any liabilities arising after the date of transfer do not bind the transferee.

Additional Information 

• Option 2. Before the date of transfer:Incorrect – Liabilities are considered only as on the actual date of transfer, not before it.
• Option 3. After 15 days from the date of transfer: Incorrect – The law does not specify any 15-day period; liabilities after transfer date are irrelevant.
• Option 4. Before 15 days from the date of transfer: Incorrect – Same as above, no such time frame applies for liabilities.

The correct answer is The representation must necessarily be fraudulent

Key Points

• Section 43 of the Transfer of Property Act, 1882 deals with the doctrine of “feeding the estoppel” — it applies when a person transfers property without authority but later acquires the title.
• The key conditions for the application of Section 43 are:
• The transferor makes a representation (express or implied) that he is authorized to transfer the property.
• The property transferred must be immovable property.
• The transfer must be for consideration (i.e., not a gift).
• The transferee has acted in good faith and has relied on such representation.
• Fraud is not a necessary condition — even an honest mistaken representation will attract Section 43 if other conditions are fulfilled.
• If the transferor later acquires the interest in the property, the transferee has the option to enforce the original transfer.

Additional Information

• Option 2. The transferor makes a representation that he is competent to transfer: Incorrect — This is an essential requirement for Section 43 to apply.
• Option 3. Transfer is of immovable property:  Incorrect — Section 43 specifically applies to immovable property.
• Option 4. Transfer is for consideration: Incorrect — Only transfers for consideration are covered; gratuitous transfers like gifts are excluded.

The correct answer is A condition not to sell during the lifetime of the transferor

Key Points

• This is an absolute restraint on alienation (i.e., total prohibition on transfer during transferor's life).
• Under Section 10 of TPA, 1882, absolute restraints are void.
• The transferee gets absolute ownership and cannot be restricted from transferring during anyone’s lifetime.

Additional Information

• Option 1.  A condition not to sell outside the family
  • This is a partial restraint (restricts to family but not absolute prohibition).
  • Partial restraints may be valid if reasonable and not repugnant to the nature of the transfer.
• Option 3. A condition not to sell to a person of different religion
  • Though discriminatory, this is a partial restraint (still allows sale to persons of same religion).
  • Section 10 strikes down absolute restraints, not partial ones (unless opposed to public policy or discriminatory laws apply).
• Option 4.  A condition restraining sub-letting of leased property
  • Leases are governed under Section 108 of TPA.
  • Sub-letting restrictions are valid conditions in lease agreements; not hit by Section 10.

The correct answer is Suit must be collusive

Key Points

• Section 52 of the Transfer of Property Act, 1882 deals with the doctrine of "lis pendens", which means “pending litigation”.
• It provides that during the pendency of a suit or proceeding related to any right in immovable property, no transfer or dealing with the property is allowed that may affect the rights of the other party.
• The purpose is to prevent third-party transfers from interfering with the court's decision.
• Essential conditions for application of lis pendens:
  • Pendency of a suit or proceeding: There must be an ongoing legal action concerning immovable property.
  • Pendency must be in a competent court: The court must have the legal jurisdiction over the matter.
  • The transfer or alienation must affect the rights of the other party in the suit.
  • Property must be immovable.

Additional Information

• Pendency of a suit or proceeding: Incorrect — A pending suit is essential for the application of the rule of lis pendens.
• Pendency in a competent court: Incorrect — The suit must be filed in a court that has jurisdiction over the matter.
• Alienation must affect the rights of other party: Incorrect — The transfer must impact the rights being claimed in the ongoing suit for lis pendens to apply.

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.