TP Act MCQ Quiz - Objective Question with Answer for TP Act - 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 Section 106

Key Points

• Section 106 of the Transfer of Property Act, 1882 deals with the duration and termination of certain leases, especially in the absence of a written contract or local usage.
• The Transfer of Property (Amendment) Act, 2003 brought important clarity and uniformity in lease termination procedures under this section.
• Key changes made by the 2003 Amendment:
  • Made it mandatory to serve a notice in writing for termination of a lease.
  • Clarified that the notice period for termination is:
  • 15 days for leases from month to month for non-agricultural purposes.
  • Six months for leases for agricultural or manufacturing purposes.
  • Specified that such notice must expire with the end of a month of tenancy.
• The amendment aimed to curb arbitrary evictions and ensure proper notice and legal procedure for lease termination.

Additional Information

• Option 1. Section 107: Incorrect – Deals with leases how made, not amended by the 2003 Act.
• Option 3. Section 108: Incorrect – Lists rights and liabilities of lessor and lessee, not touched by the 2003 amendment.
• Option 4.Section 100: Incorrect – Pertains to charges on immovable property, unrelated to lease duration or termination.

The correct answer is Section 127

Key Points

• Section 127 deals with the concept of onerous gifts, i.e., gifts that come with a burden or obligation attached to them.
• A gift is said to be onerous when:
• The donee receives a gift that includes a liability (e.g., a property subject to debt or encumbrance).
• The donee must either accept or reject the gift in totality—they cannot accept the benefit and reject the burden.
• The section also applies to universal donees, i.e., persons who receive the entire estate of the donor under a gift.
• If a donee accepts a part of the gift which is beneficial, they are deemed to have accepted the whole gift including its obligations, especially if the donee is a major and competent to contract.
• If the donee is a minor, the burden does not bind them unless, after attaining majority, they accept the gift in full.

Additional Information

• Option 2. Section 124: Incorrect – Deals with what constitutes a valid gift (transfer without consideration).
• Option 3. Section 125: Incorrect – Relates to gift made to several persons where one does not accept.
• Option 4. Section 126:Incorrect – Provides for revocation or suspension of gifts under certain conditions.

The correct answer is Section 76

Key Points

• Section 76 of the Transfer of Property Act, 1882 lays down the statutory duties of a mortgagee who takes possession of the mortgaged property.
• A mortgagee in possession is someone who has lawfully taken control of the mortgaged property with the mortgagor's consent or under the terms of the mortgage.
• Duties under Section 76 include:
  • Manage the property prudently as a person of ordinary prudence would manage their own property.
  • Use the property’s income (e.g., rents and profits) to pay interest and principal on the mortgage.
  • Keep clear accounts of all receipts and expenses.
  • Avoid waste or deterioration of the property.
  • Pay government dues and public charges from the income of the property.
• The mortgagee is not liable for deterioration of the property if it happens without his fault or negligence.

Additional Information 

• Option 1. Section 77: Incorrect – Deals with the liability of mortgagor to pay public charges, not the duties of mortgagee in possession.
• Option 2. Section 78: Incorrect – Refers to postponement of prior mortgage, not related to duties of a mortgagee in possession.
• Option 3. Section 79:Incorrect – Concerns mortgagee’s rights in case of lease, not general statutory duties.

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.

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 1.Key Points

•  In the given scenario, Ashok lets a house to Bharat for five years, and Bharat underlets the house to Kishore at a monthly rent of Rs. 2,000/-. After the expiration of the five years, Kishore continues in possession of the house and pays the rent to Ashok.
• According to Section 116 of the Transfer of Property Act, 1882, if a lessee or under-lessee remains in possession of the property after the lease term has ended and the lessor or his legal representative accepts rent from the lessee or under-lessee, or otherwise agrees to their continued possession, the lease is considered renewed. This renewal is either from year to year or from month to month, depending on the original lease purpose, as specified in Section 106.
• In this case, since Ashok has accepted rent from Kishore after the expiration of the original lease, Kishore's status is that of a tenant holding over. The lease is thereby renewed according to the original terms, either on a yearly or monthly basis as per the original lease agreement.

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.