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

The correct answer is amounts to disclaimer and the lease can be forfeited.

Key Points

• Under Section 111(g) of the Transfer of Property Act, 1882, a lease may be forfeited if the lessee denies the title of the lessor, i.e., disclaims the landlord’s ownership.
• Effect of Saying “You are not my landlord”:
  • This amounts to a repudiation of the lessor’s title (called disclaimer).
  • It gives the lessor the right to forfeit the lease, provided a notice of forfeiture is served under Section 111(g).
• Important Conditions:
  • Such forfeiture is not automatic; the lessor must elect to treat the lease as forfeited and give proper notice of forfeiture.

Additional Information

• The words are void, but the lease cannot be forfeited. –  Incorrect. These words are significant in law and can lead to forfeiture.
• Will result in automatic termination of lease. –  Incorrect. Termination is not automatic; notice by the lessor is required.
• Will entitle the lessor for claim and compensation. – Incorrect. The appropriate remedy here is forfeiture, not compensation alone.

The correct answer is Under Section 61

Key Points

• This section provides that if a mortgagor has executed multiple mortgages of different properties to the same mortgagee, the mortgagor cannot redeem one mortgage without redeeming the other(s).
• This is known as the “doctrine of consolidation”.
• However, this right of consolidation must be expressly reserved in the mortgage deed.
• Key Point:The doctrine is beneficial to the mortgagee and operates to prevent piecemeal redemption unless otherwise agreed.

Additional Information

• Section 60 – Deals with the right of redemption, not consolidation.
• Section 62 – Relates to the right to accession to mortgaged property, not consolidation.
• Section 63 – Deals with improvements made by mortgagee in possession, not consolidation.

The correct answer is ‘B’ is not chargeable with rent to ‘C’.

Key Points

• When the lessor transfers the leased property, the transferee (like C) steps into the shoes of the original lessor (A).
• The lessee (B) becomes liable to pay rent to the transferee only after getting notice of the transfer.
• Application to the Given Case:
  • ‘B’ did not receive notice of the transfer from ‘A’ to ‘C’.
  • Therefore, ‘B’ rightly paid rent to ‘A’, believing A was still the landlord.
  • Since the payment was made in good faith and without notice, ‘B’ cannot be held liable again for rent to ‘C’.
• Legal Principle:
  • No double liability on tenant for the same rent.
  • Protection is granted when rent is paid in good faith and without notice.

Additional Information

• B’ is chargeable with rent to ‘C’. –Incorrect. B cannot be liable again since payment was made in good faith before notice.
• Collected rent is divisible between ‘A’ and ‘C’. – Incorrect. C has no right to claim part of the rent unless notice was given.
• None of the above. – Incorrect. Option 1 is the legally correct answer.

The correct answer is Mortgage by conditional sale

Key Points

• Foreclosure means the right of the mortgagee (lender) to stop the mortgagor (borrower) from redeeming the property, making the mortgagee the absolute owner of the property.
• Under the Transfer of Property Act, 1882 (Section 67), foreclosure is allowed only in cases of mortgage by conditional sale.
• In mortgage by conditional sale (Section 58(c)), the property is ostensibly sold to the mortgagee with a condition that:
  • if the borrower repays the loan, the sale becomes void, or
  • if the borrower fails to pay, the sale becomes absolute.
• In case of default, the mortgagee can file a suit for foreclosure and claim full ownership of the property

Additional Information

• Usufructuary mortgage: Incorrect. No foreclosure remedy. Mortgagee gets possession and income from property till debt is repaid.
• Simple mortgage: Incorrect. Remedy is by filing a suit for sale of mortgaged property, not foreclosure.
• English mortgage: Incorrect. Remedy is suit for sale; foreclosure is not applicable.

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 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.

The correct answer is Option 2. 

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.