TP Act MCQ Quiz - Objective Question with Answer for TP Act - Download Free PDF

The correct answer is Option 2.

Key Points 

Explanation:

• Section 14 of the Transfer of Property Act, 1882 introduces the rule against perpetuity, which prevents the creation of any interest in property that will take effect after the lifetime of persons living at the time of the transfer and the minority of a person who will be born later. This rule is designed to prevent property interests from being tied up indefinitely and ensures that they do not extend beyond the reasonable lifetime of individuals who are alive at the time of the transfer.

The correct answer is option 4.

Key PointsSection 12 of the Transfer of Property Act, 1882 invalidates any condition in a transfer that would cause an interest to cease upon the insolvency of the transferee or upon their attempt to transfer or dispose of the property. This type of condition is considered void because it unjustly restricts the transferee’s ability to dispose of their property and creates an unreasonable limitation on the transfer of property rights.

The correct answer is Option. 2

Key PointsSection 6(f) of the Transfer of Property Act, 1882 explicitly states that public offices cannot be transferred.

A public office represents a position of authority or responsibility granted by the government, and it cannot be assigned or transferred to another person.

The Act also prohibits the transfer of a public officer's salary before or after it has become payable, ensuring that public officeholder's duties remain tied to the individual holding that office.

The correct answer is Option. 1

Key Points

•  Section 5 of the Transfer of Property Act, 1882, defines the term "transfer of property" as an act where a living person conveys property, either in the present or future, to one or more other living persons, or to himself and one or more other living persons. This provision also clarifies that "living person" includes companies, associations, and bodies of individuals. This broad definition allows for various types of transfers, both of immovable and movable property.

The correct answer is Option. 3

Key Points 

Explanation:

•  According to section 3 of the Transfer of Property Act, 1882   ‘A person is considered to have "notice" of a fact when they have actual knowledge of that fact. Alternatively, they can be deemed to have notice if, by failing to make a reasonable inquiry or search (through wilful abstention or gross negligence), they should have known it. This provision ensures that a person cannot escape liability or legal consequences by claiming ignorance if they could have easily discovered the fact with reasonable effort.

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 PointsUnder Section 134 of the Transfer of property Act, 1882 Mortgaged debt is defined.

It states : Where a debt is transferred for the purpose of securing an existing or future debt, the debt so transferred, if received by the transferor or recovered by the transferee, is applicable, first, in payment of the costs of such recovery: secondly, in or towards satisfaction of the amount for the time being secured by the transfer; and the residue, if any, belongs to the transferor or other person entitled to receive the same.

Additional Information

•  A mortgaged debt refers to a debt secured by a mortgage. In a mortgage transaction, the borrower (mortgagor) pledges property as security for a loan or debt owed to the lender (mortgagee). If the borrower fails to repay the debt according to the terms of the mortgage agreement, the lender has the right to take possession of the mortgaged property and sell it to recover the outstanding debt.
• The Transfer of Property Act governs the rights and obligations of parties involved in mortgage transactions, including the creation, transfer, and extinguishment of mortgages. It provides legal mechanisms for the enforcement of mortgage rights, such as foreclosure and sale of mortgaged property.

The correct answer is Option 3.

Key Points

• Section 67 of the Transfer of Property Act, 1882, provides for the Right to foreclosure or sale.
• It states that —In the absence of a contract to the contrary, the mortgagee has, at any time after the mortgage-money has become due to him, and before a decree has been made for the redemption of the mortgaged property, or the mortgage-money has been paid or deposited as hereinafter provided, a right to obtain from the Court a decree that the mortgagor shall be absolutely debarred of his right to redeem the property, or a decree that the property be sold.
  A suit to obtain a decree that a mortgagor shall be absolutely debarred of his right to redeem the mortgaged property is called a suit for foreclosure.
  Nothing in this section shall be deemed—
  (a) to authorise any mortgagee other than a mortgagee by conditional sale or a mortgagee under an anomalous mortgage by the terms of which he is entitled to foreclose, to institute a suit for foreclosure, or an usufructuary mortgagee as such or a mortgagee by conditional sale as such to institute a suit for sale; or
  (b) to authorise a mortgagor who holds the mortgagee's rights as his trustee or legal representative, and who may sue for a sale of the property, to institute a suit for foreclosure; or (c) to authorise the mortgagee of a railway, canal or other work in the maintenance of which the public are interested, to institute a suit for foreclosure or sale; or
  (d) to authorise a person interested in part only of the mortgage-money to-institute a suit relating only to a corresponding part of the mortgaged property, unless the mortgagees have, with the consent of the mortgagor, severed their interests under the mortgage.

Key Points

•  Section 118 deals with the definition of 'exchange'.
• According to Section 118, an "exchange" occurs when two persons mutually transfer the ownership of one thing for the ownership of another. In this transaction, neither thing or both things can be money only. Therefore, option B correctly represents the definition provided in Section 118.
• Example: Person A owns a piece of land, and Person B owns a residential house. They decide to exchange their properties. According to the Transfer of Property Act, when Person A transfers the ownership of their land to Person B, and Person B transfers the ownership of their residential house to Person A, this transaction is considered an "exchange" under the Act.

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 A-3, B-2, C-4, D-1

Key PointsSection 35 of the Transfer of Property Act, 1882 relates to "Election when necessary". It states that : Where a person professes to transfer property which he has no right to transfer, and as part of the same transaction confers any benefit on the owner of the property, such owner must elect either to confirm such transfer or to dissent from it; and in the latter case he shall relinquish the benefit so conferred, and the benefit so relinquished shall revert to the transferor or his representative as if it had not been disposed of, subject nevertheless, where the transfer is gratuitous, and the transferor has, before the election, died or otherwise become incapable of making a fresh transfer, and in all cases where the transfer is for consideration, to the charge of making good to the disappointed transferee the amount or value of the property attempted to be transferred to him.

Section 92 of the Transfer of Property Act, 1882 relates to Subrogation. It states that:  Any of the persons referred to in section 91 (other than the mortgagor) and any co-mortgagor shall, on redeeming property subject to the mortgage, have, so far as regards redemption, foreclosure or sale of such property, the same rights as the mortgagee whose mortgage he redeems may have against the mortgagor or any other mortgagee.
The right conferred by this section is called the right of subrogation, and a person acquiring the same is said to be subrogated to the rights of the mortgagee whose mortgage he redeems.
A person who has advanced to a mortgagor money with which the mortgage has been redeemed shall be subrogated to the rights of the mortgagee whose mortgage has been redeemed, if the mortgagor has by a registered instrument agreed that such persons shall be so subrogated.
Nothing in this section shall be deemed to confer a right of subrogation on any person unless the mortgage in respect of which the right is claimed has been redeemed in full.

Section 116 of the Transfer of Property Act, 1882 relates to "Effect of holding over". It states that: If a lessee or under-lessee of property remains in possession thereof after the determination of the lease granted to the lessee, and the lessor or his legal representative accepts rent from the lessee or under-lessee, or otherwise assents to his continuing in possession, the lease is, in the absence of an agreement to the contrary, renewed from year to year, or from month to month, according to the purpose for which the property is leased, as specified in section 106.

Section 112 of the Transfer of Property Act, 1882 relates to "Waiver of forfeiture". It states that : A forfeiture under section 111, clause (g) is waived by acceptance of rent which has become due since the forfeiture, or by distress for such rent, or by any other act on the part of the lessor showing an intention to treat the lease as subsisting:
Provided that the lessor is aware that the forfeiture has been incurred:
Provided also that, where rent is accepted after the institution of a suit to eject the lessee on the ground of forfeiture, such acceptance is not a waiver.

The correct answer is Section 121.

Key Points

• Section 121 of the Transfer of Property Act, 1882, provides for the Exchange of money.
• It states that —On an exchange of money, each party thereby warrants the genuineness of the money given by him. 

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 Section 128.

Key Points

• Section 128 of the Transfer of Property Act, 1882, provides for Universal donee.
• It states that —Subject to the provisions of section 127, where a gift consists of the donor’s whole property, the done is personally liable for all the debts due by and liabilities of the donor at the time of the gift to the extent of the property comprised therein.