Multiple Choice Questions on Transfer of Property Act- PART I
1. Under the Transfer of Property Act, which of the following is not a valid mode of transfer for an actionable claim?
a. By a registered instrument signed by the transferor
b. By delivery of possession of documents relating to the debt
c. By an oral agreement supported by consideration
d. By endorsement and delivery if represented by a negotiable instrument
b. By delivery of possession of documents relating to the debt
c. By an oral agreement supported by consideration
d. By endorsement and delivery if represented by a negotiable instrument
Answer: c
Explanation: Section 130 of the Act requires an actionable claim to be transferred only through a written and signed instrument. Oral agreements are not recognized for transferring actionable claims.
2. A lease of immovable property made from year to year without a registered instrument is:
a. Valid but terminable at will
b. Void ab initio
c. Enforceable as a month-to-month lease
d. Valid only if accompanied by delivery of possession
b. Void ab initio
c. Enforceable as a month-to-month lease
d. Valid only if accompanied by delivery of possession
Answer: c
Explanation: Under Section 107, a lease of immovable property from year to year must be by a registered instrument. If not, it takes effect as a month-to-month lease.
3. Which of the following interests is not transferable under the Act?
a. Right to future maintenance
b. Right of re-entry for breach of condition
c. Right to sue for damages
d. All of the above
b. Right of re-entry for breach of condition
c. Right to sue for damages
d. All of the above
Answer: d
Explanation: Section 6 expressly prohibits the transfer of these interests—future maintenance, right of re-entry, and a bare right to sue.
4. Where a transfer is made subject to a condition restraining the transferee from alienating absolutely, such condition is:
a. Void as against public policy
b. Valid if reasonable in duration
c. Enforceable only in case of leases
d. Valid if expressly agreed upon by the parties
b. Valid if reasonable in duration
c. Enforceable only in case of leases
d. Valid if expressly agreed upon by the parties
Answer: a
Explanation: Section 10 declares an absolute restraint on alienation void, except in the case of leases where a condition against subletting may be valid.
5. A property is transferred to A for life, and after his death to B if B marries C. Before A dies, B marries C. The interest of B is:
a. Vested interest
b. Contingent interest
c. Executory interest
d. Lien
b. Contingent interest
c. Executory interest
d. Lien
Answer: a
Explanation: Under Section 19, since B fulfilled the condition (marrying C) during A’s lifetime, his interest becomes vested, though its enjoyment is postponed until A’s death.
6. Which of the following is an essential element of a valid transfer under the Act?
a. Consideration must always be monetary
b. The transferor must be competent to contract and entitled to transfer
c. The transferee must necessarily be a natural person
d. The transfer must always be in writing
b. The transferor must be competent to contract and entitled to transfer
c. The transferee must necessarily be a natural person
d. The transfer must always be in writing
Answer: b
Explanation: Section 7 requires the transferor to be competent and entitled to the property. Consideration may be absent in gifts, and transferees can be artificial persons.
7. A transfers property to B with a direction that B shall transfer it to C upon B’s death. Such arrangement is:
a. A valid conditional transfer
b. Void as creating an absolute restraint on B
c. Valid if C consents
d. Void for creating a repugnant interest
b. Void as creating an absolute restraint on B
c. Valid if C consents
d. Void for creating a repugnant interest
Answer: d
Explanation: Section 10 and 11 disallow directions that destroy the transferee’s absolute ownership, making such conditions void.
8. Under the doctrine of election (Sections 35-37), a person who elects to take under a transfer must:
a. Compensate the transferor for loss suffered
b. Relinquish inconsistent rights
c. Obtain court permission
d. Take all properties comprised in the transfer
b. Relinquish inconsistent rights
c. Obtain court permission
d. Take all properties comprised in the transfer
Answer: b
Explanation: The doctrine of election requires a person to relinquish rights inconsistent with the benefit accepted, ensuring consistency in ownership.
9. In case of a transfer by an ostensible owner, the transfer is protected if:
a. The transferee had knowledge of the real owner’s title
b. The transferee acted in good faith and took reasonable care
c. The owner had expressly consented in writing only
d. The transferor is a minor
b. The transferee acted in good faith and took reasonable care
c. The owner had expressly consented in writing only
d. The transferor is a minor
Answer: b
Explanation: Section 41 protects transfers by ostensible owners if the transferee acted in good faith after reasonable care, and the owner consented (express or implied).
10. Which of the following transfers is exempt from the rule against perpetuity?
a. A gift for the construction of a family temple
b. A settlement for maintenance of a minor
c. A transfer for the benefit of an unborn person absolutely
d. A charitable endowment
b. A settlement for maintenance of a minor
c. A transfer for the benefit of an unborn person absolutely
d. A charitable endowment
Answer: d
Explanation: Section 18 provides that transfers for public benefit, such as charitable or religious endowments, are exempt from the rule against perpetuity.
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Ruchika Mohapatra
Contributing author
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