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

Last updated on May 21, 2025

Latest Transfer By Act Of Parties MCQ Objective Questions

Transfer By Act Of Parties Question 1:

According to Section 8 of the Transfer of Property Act, 1882, what happens when a transfer of property is made?

  1. The transferee gets only the property itself, excluding any easements or rights
  2. The transferee automatically gets all the legal incidents related to the property, unless stated otherwise.
  3. The transferee gets only the physical assets of the property.
  4. The transferee does not get the rents and profits that accrue after the transfer.

Answer (Detailed Solution Below)

Option 2 : The transferee automatically gets all the legal incidents related to the property, unless stated otherwise.

Transfer By Act Of Parties Question 1 Detailed Solution

The correct answer is Option. 2

Key Points 

Explanation:

  • Section 8 of the Transfer of Property Act, 1882 specifies that unless a different intention is expressed or necessarily implied, the transfer of property passes to the transferee all the interests that the transferor is capable of passing. This includes the legal incidents such as easements annexed to the property, rents and profits accruing after the transfer, and anything attached to the earth (e.g., in the case of land or buildings). If machinery is attached to the earth, moveable parts are also included. This ensures that the transferee receives the full benefit of the property transfer.

Transfer By Act Of Parties Question 2:

Where several co-owner of immovable property transfer a share therein without specifying that the transfer is to take effect on any particular share or shares of the transfers, the transfer, as among such transferors, takes effect on such share-

  1. Equally where the share were equal and where they are unequal proportionately to the extent of such shares
  2. In equally where the shares were equal and where they are unequal proportionately to the extent of such shares
  3. Only 2 is correct
  4. None of the above

Answer (Detailed Solution Below)

Option 1 : Equally where the share were equal and where they are unequal proportionately to the extent of such shares

Transfer By Act Of Parties Question 2 Detailed Solution

The correct answer is Option 1

Key Points

  • This principle is derived from Section 45 of the Transfer of Property Act, 1882, which deals with joint transfers by co-owners.
  • When immovable property is transferred for consideration by persons having distinct shares, and the consideration is paid out of a fund belonging to them in common, the transfer is presumed to be:
    • In equal shares if their shares in the fund are equal,
    • And in proportionate shares if their shares in the fund (or property) are unequal.
  • If multiple co-owners of immovable property jointly transfer a share in the property but do not specify:
    • Which co-owner’s share is being transferred, or
    • How much of each co-owner’s share is affected,
  • Then the law presumes that:
    • If their original ownership shares were equal, the transferred share is divided equally among them;
    • If their ownership shares were unequal, the transferred share is attributed proportionately to their original shares.

Transfer By Act Of Parties Question 3:

The doctrine of part performance is embodied in - 

  1. Sec. 53 of the Transfer of Property Act 
  2. Sec. 53(1) of the Transfer of Property Act
  3. Sec. 53(2) of the Transfer of Property Act 
  4. Sec. 53A of the Transfer of Property Act

Answer (Detailed Solution Below)

Option 4 : Sec. 53A of the Transfer of Property Act

Transfer By Act Of Parties Question 3 Detailed Solution

The correct answer is Option 4 

Key Points Section 53A of the Transfer of Property Act, 1882
If a person enters into a written contract to transfer immovable property for consideration, and the document is signed by the transferor or someone authorized on their behalf, such that the essential terms of the transfer can be reasonably determined, then:

If the transferee has taken possession of the property (or part of it) in part performance of the contract, or if already in possession, continues to remain in possession and performs some act in furtherance of the contract; and

If the transferee has performed or is willing to perform their part of the contract,

then, even if the legal formalities for completing the transfer have not been fulfilled, the transferor (or anyone claiming under them) cannot assert any rights over the property against the transferee, except for rights expressly mentioned in the contract.

However, this protection does not affect the rights of a bonafide purchaser for consideration who had no notice of the contract or part performance.

Transfer By Act Of Parties Question 4:

Which Section of the Transfer of Property Act provides for transfer for the benefit of an unborn person?

  1. Sec. 12
  2. Sec. 13
  3. Sec. 14 
  4. Sec. 15

Answer (Detailed Solution Below)

Option 2 : Sec. 13

Transfer By Act Of Parties Question 4 Detailed Solution

The correct answer is Sec. 13

Key PointsSection 13 Transfer for benefit of unborn person of the Transfer of Property Act, 1882 states that an interest in a property can be created for the benefit of an unborn person, but it must be subject to a prior life interest in favor of a living person. Furthermore, the interest granted to the unborn person must be absolute and extend to the entire remaining interest of the transferor.

  • Illustration:-

A transfers property to B in trust for A and A’s intended wife successively for their lives. After their deaths, the property is to go to their eldest son for life, and after his death, to A’s second son absolutely. The transfer in favor of the eldest son is invalid because it does not grant him the entire remaining interest in the property.

Transfer By Act Of Parties Question 5:

Which section of the Transfer of Property Act 1882 deals with "Rule against Perpetuity"

  1. Section 14.
  2. Section 15.
  3. Section 16.
  4. Section 17.

Answer (Detailed Solution Below)

Option 1 : Section 14.

Transfer By Act Of Parties Question 5 Detailed Solution

The correct answer is "Section 14 "

Key Points

  • Section 14 - Rule against Perpetuity:
    • The rule against perpetuity is a legal principle that prevents property from being tied up indefinitely and ensures that property remains transferable and marketable.
    • Section 14 of the Transfer of Property Act, 1882, specifically addresses this rule in the Indian context, limiting the creation of future interests in property to a specified time period.
    • The rule mandates that any interest created in property must vest, if at all, within a certain period, usually the lifetime of a living person plus 18 years, commonly known as the "perpetuity period."
    • This rule is crucial for preventing the indefinite restriction on the transfer of property, which can hinder economic development and the free flow of property in the market.

Additional Information

  • Section 15 - Transfer to Unborn Person:
    • This section deals with the transfer of property to unborn persons. It allows the creation of a future interest in favor of an unborn person who must come into existence within the perpetuity period.
  • Section 16 - Transfer to Take Effect on Failure of Prior Interest:
    • This section states that if a transfer is to take effect upon the failure of a prior interest, such transfer shall not take effect unless the prior interest fails.
  • Section 17 - Direction for Accumulation:
    • This section deals with the directions for accumulation of income from the property and specifies conditions under which such directions are valid.

Top Transfer By Act Of Parties MCQ Objective Questions

Marshalling securities is provided under which section of the Transfer of Property Act, 1882?

  1. Section 80
  2. Section 81
  3. Section 82
  4. Section 83

Answer (Detailed Solution Below)

Option 2 : Section 81

Transfer By Act Of Parties Question 6 Detailed Solution

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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.

Section 43 of the Transfer of Property Act, 1882, which deals with transfer by unauthorised person who subsequently acquires interest in immovable property transferred, underlines doctrine of;

  1. Actionable claims.
  2. Estoppel by deed.
  3. Estoppel by election.
  4. Right of pre - emption.

Answer (Detailed Solution Below)

Option 2 : Estoppel by deed.

Transfer By Act Of Parties Question 7 Detailed Solution

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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.

What does Section 19 of the Transfer of Property Act, 1882, deal with?

  1. Transfer of vested interests
  2. Creation of vested interests
  3. Transfer of contingent interests
  4. Transfer of life interests

Answer (Detailed Solution Below)

Option 2 : Creation of vested interests

Transfer By Act Of Parties Question 8 Detailed Solution

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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.

According to Section 11, what rights does the transferee have if there are specific directions regarding the application or enjoyment of the interest created?

  1. The transferee must abide by the directions strictly.
  2. The transferee can ignore the directions and dispose of the interest as if there were no such direction.
  3. The transferee must seek permission from the transferor to dispose of the interest.
  4. The transferee must seek court intervention to enforce the directions.

Answer (Detailed Solution Below)

Option 2 : The transferee can ignore the directions and dispose of the interest as if there were no such direction.

Transfer By Act Of Parties Question 9 Detailed Solution

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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 doctrine of part performance is provided under which section of the Transfer of Property Act, 1882?

  1. Section 53
  2. Section 53 A
  3. Section 54
  4. Section 54 A

Answer (Detailed Solution Below)

Option 2 : Section 53 A

Transfer By Act Of Parties Question 10 Detailed Solution

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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.

Under Transfer of Property Act, 1882 when can an unborn person acquire vested interest on transfer for his benefit?

  1. Upon his birth
  2. Upon completing the majority age
  3. Upon his marriage
  4. None of the above

Answer (Detailed Solution Below)

Option 1 : Upon his birth

Transfer By Act Of Parties Question 11 Detailed Solution

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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.

Which one of the following properties may be transferred ?

  1. Mere easement
  2. A right to future maintenance
  3. Immovable property
  4. A mere right to sue

Answer (Detailed Solution Below)

Option 3 : Immovable property

Transfer By Act Of Parties Question 12 Detailed Solution

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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

According to Section 7 of the Transfer of Property Act, who is competent to transfer property?

  1. Any person competent to contract and entitled to transferable property.
  2. Only the owner of the property.
  3. Only the owner of the property, unless authorized by law.
  4. Any person, irrespective of their legal capacity or ownership rights.

Answer (Detailed Solution Below)

Option 1 : Any person competent to contract and entitled to transferable property.

Transfer By Act Of Parties Question 13 Detailed Solution

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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.

When does a person acquire a contingent interest in property according to Section 21 of Tranfer of Property Act 1882? 

  1. When the interest is subject to a specified uncertain event
  2. When the interest takes effect immediately upon transfer
  3. When the interest is transferred absolutely
  4. When the transferor reserves a prior interest to another person

Answer (Detailed Solution Below)

Option 1 : When the interest is subject to a specified uncertain event

Transfer By Act Of Parties Question 14 Detailed Solution

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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.

What is meant by "to transfer property" as per Section 5?

  1. To transfer ownership rights
  2. To transfer possession of the property
  3. To perform an act of conveying property to one or more other living persons
  4. To execute a deed of transfer

Answer (Detailed Solution Below)

Option 3 : To perform an act of conveying property to one or more other living persons

Transfer By Act Of Parties Question 15 Detailed Solution

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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.
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