Transfer of Property Practice Sheet

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LEGAL REASONING
PRACTICE SHEET ( TOTAL LECTURE -3)
TRANSFER OF PROPERTY

Directions (1-5) Read the following passage lease of a plot of land to B with the condition
and answer the given questions. that if shall build upon it, he would re-enter —
Section 5 of the Transfer of Property Act, 1882 transfers to C his right of re-entering in case of
defines the term transfer of property. According breach of the covenant not to build. The
to this section, transfer of property means an transfer is invalid.
act by which a living person conveys property, Clause (c) mentions that easement cannot be
in present or in future, to one or more other transferred. An easement is a right to use or
living persons, or to himself and other living restrict the use of land of another in some way.
persons. The phrase “living person” includes a For example, the right of way or right of light
company or association or body of individuals, cannot be transferred.
whether incorporated or not, but nothing in this Clause (d) mentions that an interest restricted in
section shall affect any law for the time being in its enjoyment of himself cannot be transferred.
force relating to or by companies, associations For instance, if a house is lent to a man for his
or bodies of individuals. personal use, he cannot transfer his right of
Section 6 of the Transfer of Property Act, 1882 enjoyment to another.
discusses the property which may be Clause (dd) restricts the transfer of the right to
transferred. The section states that property of maintenance. Such a right cannot be
any kind may be transferred. However, Clauses transferred as such right is for the personal
(a) to (i) of section 6 mention the properties benefit of the concerned person.
which cannot be transferred.
Q1 Arun expects to inherit his aunt Chandini's
Clause (a) describes spes successionis cannot
house worth Rs. 50,000. He transfers this
be transferred. This clause states that the
expectation to Bhushan. What is the legal
transfer of a bare chance of a person to get a
status of this transfer?
property is prohibited under this section. For
(A) The transfer is valid because Arun has a
example, Arun expecting that Chandini, his
legitimate expectation.
aunt, who had no issues, would bequeath her
(B) The transfer is invalid because it's a
house worth Rs. 50,000 transfers it to Bhushan.
mere chance of receiving the property.
The transfer is invalid as it is a mere matter of
(C) The transfer is valid because it involves
chance of receiving the property on the part of
property worth a significant amount.
Arun. Thus, it is invalid.
(D) The transfer is valid if Chandini consents
Clause (b) mentions that the right of re-entry
to it.
cannot be transferred. The right to re-entry
implies a right to resume possession of the land Q2 A grants a lease of a plot of land to B with
which has been given to someone else for a the condition that B will build upon it. A
certain time. The section mentions that the retains the right to re-enter if B breaches
right of re-entry cannot be transferred by itself the covenant. B then transfers this right to
apart from the land. For example, A grants a

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re-enter to C. What is the legality of this The transfer is valid if D and F are close
transfer? relatives.
(A) The transfer is invalid because the right
Directions (6-10) Read the following passage
to re-enter cannot be transferred
and answer the given questions.
separately from the land.
Section 7 of the transfer of property act has
(B) The transfer is valid because B is
laid down rules with regard to the eligibility
allowed to transfer the right to re-enter.
criteria for transferring one’s property. According
(C) The transfer is valid because it involves
to the transfer of property rule, only an
a lease of land.
individual who is competent to enter into a
(D) The transfer is valid if A consents to it.
contract with others is eligible to perform
Q3 X has a right of way over Y's property. X property transfer. Furthermore, an individual
transfers this right to Z. What is the legal willing to transfer property should have the
status of this transfer? authority to perform the transfer, though
(A) The transfer is valid because he/she is not the property’s real owner.
easements can be transferred. In addition to the above, any property transfer
(B) The transfer is valid because the right must be performed by a competent person
of way is a common easement. who is above 18 years of age. The person
(C) The transfer is invalid because transferring a property must be of a sound mind
easements cannot be transferred. should be someone who is not disqualified by
(D) The transfer is valid if Y consents to it. law and must not be intoxicated. Besides,
property transfer must take place between
Q4 A lends his house to B for personal use. B
living beings (it can be an association, a
transfers his right of enjoyment to C. What
company or a body of individuals).
is the legality of this transfer?
The key elements of the transfer of Property Act
(A) The transfer is valid because A's house
1882 are:
is involved.
Property transfer must be done by a competent
(B) The transfer is valid because personal
person. He/she should not be intoxicated, must
use rights can be transferred.
be of a sound mind, and should be a major or
(C) The transfer is invalid because a
someone who is not disqualified by law.
personal right of enjoyment cannot be
For conveyance of property, it’s necessary that
transferred.
the transfer is not done before the title.
(D) The transfer is valid if A and B both
Conveyance can be performed in the present
consent to it.
or decided to be exercised in the future.
Q5 D has a right to receive maintenance from For property transfer, the property should be
E. D transfers this right to F. What is the ‘transferrable’. Some properties like the right to
legality of this transfer? sue, the right to future maintenance, stipends to
(A) The transfer is valid because it involves the air force/navy/political prisoners/civil
a right to maintenance. pensioners and the chance of an heir-apparent
(B) The transfer is valid if E agrees to the to succeed to an estate are not transferrable.
transfer. The property must comply with the mentioned
(C) The transfer is invalid because rights to conditions in order to be transferrable. In the
maintenance cannot be transferred. event of the condition becoming forbidden by
(D)

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law, immoral, impossible or opposed to public How should this transfer be executed to be
policy, the transfer would be considered void. valid?
Property transfer to an unborn child is not (A) Verbal agreement between Emily and
allowed. However, it can be first transferred in Mia.
favour of an individual who is alive on the (B) Written agreement signed by both
transfer date. The property will vest in this parties.
person’s name until the child is born. (C) Verbal agreement witnessed by two
The transfer of property must take place during neighbors.
an individual’s lifetime, and the perpetuity rule (D) Written agreement not required for
must not be followed during the transfer. gifts.
Property transfer can be done via verbal/oral
Q9 David plans to transfer his property to his
agreement, except in cases that require a
son who is yet to be born. Is this transfer
written agreement. For instance, sale of
valid according to the Transfer of Property
movable property whose value exceeds a
Act?
hundred rupees, transfer of actionable claims,
(A) Yes, since the property is intended for
immovable property lease that exceeds more
family.
than a year, a gift that’s in the form of
(B) No, because the property must be
immovable property, etc.
transferred to a living person first.
Q6 Sarah wants to transfer her ancestral (C) Yes, if David provides a written consent
house to her cousin. She is 16 years old and for the unborn child.
of sound mind. Is she eligible to perform (D) No, because property transfer cannot
this property transfer? be done within the family.
(A) Yes, because she is of sound mind.
Q10 A company wants to transfer its office
(B) No, because she is not 18 years old.
building to another company through a
(C) Yes, because the property is ancestral.
written agreement. The office building is
(D) No, because she is not the real owner
on lease for 5 years. Is a written
of the property.
agreement necessary for this transfer?
Q7 Mark wants to transfer his right to receive a (A) Yes, because it involves an immovable
pending payment from a business deal to property lease exceeding a year.
his friend Lisa. Is this transfer valid under (B) No, because it's a corporate property
the Transfer of Property Act? transfer.
(A) Yes, because it involves a movable (C) Yes, but only if the building is worth a
property. certain amount.
(B) No, because it involves an actionable (D) No, because verbal agreements are
claim. sufficient for corporate transfers.
(C) Yes, because Lisa is a close friend of
Directions (11-15) Read the following passage
Mark.
and answer the given questions.
(D) No, because the payment amount is
The sale deed transfer is the most common and
not mentioned.
straightforward type of property transfer. It
Q8 Emily wants to gift her piece of land to her involves the sale of property from one party
niece, Mia. The land is worth 200 rupees. (seller) to another (buyer) in exchange for a
predetermined consideration. The sale deed is

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executed on stamp paper and registered with applicable laws. Property transfers in India can
the sub-registrar’s office to make it legally valid. take various forms, depending on the specific
The sale deed transfer requires the mutual circumstances and objectives of the parties
consent of both parties, and it establishes the involved. Whether through a sale deed, gift
buyer’s ownership rights over the property. A deed, inheritance, partition deed, or power of
gift deed transfer involves the voluntary transfer attorney, each type of transfer has its own legal
of property from one party (donor) to another requirements and implications. Understanding
(donee) without any monetary consideration. the characteristics and procedures associated
This type of transfer is commonly used for with different types of property transfers is
gifting property to family members, friends, or essential to ensure a smooth and legally valid
charitable organizations. The gift deed must be transaction.
executed on stamp paper and registered to
Q11 Sheela transfers a property worth rupees 1
ensure its legal validity. It is important to note
lakh to Meera in exchange for jewelry
that gift transfers may have tax implications,
worth rupees 50,000. Is this transfer of
and individuals should consult with a tax expert
property valid?
for guidance. Inheritance or succession occurs
(A) It is valid since both parties mutually
when a property is transferred to legal heirs
agreed to it.
upon the death of the owner. The transfer of
(B) It is invalid because the consideration
property through inheritance is governed by the
is insufficient, and Sheela would incur a
personal laws applicable to the deceased,
loss of 50,000.
such as the Hindu Succession Act, Muslim
(C) It is valid since the minimal
Personal Law, or Indian Succession Act. The
consideration is not a concern, and
legal heirs may need to obtain a succession
the transfer was executed validly.
certificate or probate from the relevant court to
(D) It is invalid because an exchange
establish their ownership rights. Proper
should involve an exact amount, and
documentation and legal procedures are
here, there is a 50,000-rupee deficit.
essential to ensure a smooth transfer of
inherited property. Partition deed transfer is Q12 A sells B a house for 20 lakhs, which was
employed when co-owners of a property wish on rent. B starts collecting the rent of the
to divide and transfer their respective shares. house, but this property sale was not
This type of transfer is commonly used in cases registered with the sub-registrar's office. Is
of joint ownership among family members or this sale legally valid?
business partners. A partition deed clearly (A) Yes, since there was constructive
defines the shares of each co-owner and is delivery from A’s part, and A's intention
executed on stamp paper. It must be registered is crucial.
with the sub-registrar’s office to establish the (B) No, since compliance with legal
new ownership rights of each party. A power of formalities is essential.
attorney (POA) transfer occurs when the (C) Yes, because registration can be
property owner authorizes another person (the completed later, with consent and
attorney) to act on their behalf in property- delivery being the primary factors.
related matters. The attorney may have the (D) Both A and C.
authority to sell, lease, manage, or transfer the
property. The POA should be executed on Q13 Jethalal, a property trader, authorizes
stamp paper and registered according to the Mehta to handle property transfers on his

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behalf. After receiving ownership, Mehta X authorized his wife to transfer their
receives a lucrative offer to sell the entire property to their children as a gift
property at a significantly higher market upon his death. Under which classification
rate. Mehta proceeds with the sale. Is does this property transfer fall?
Mehta's second sale valid? (A) Transfer of property through a Gift
(A) No, the second sale by Mehta is invalid deed.
because he lacked authority to (B) Transfer of property through
transfer the property, as he was not inheritance.
appointed as Jethalal's Power of (C) Transfer of property through Power of
Attorney. Attorney.
(B) Yes, the second sale is valid because (D) All of the above.
Jethalal's authorization to handle
Directions (16-20) Read the following passage
property transfers implies a Power of
and answer the given questions.
Attorney.
Section 105 states the definition of a lease
(C) Yes, the second sale is valid because
which states that it is a transfer of immovable
Mehta acted in good faith to benefit
property for a particular period for a
Jethalal's profit.
consideration of which the transferee has
(D) Yes, the second sale is valid because it
accepted the terms surrounding the
aligns with Jethalal's business
agreement.
practices.
What are the essentials of a lease?
Q14 Krishna intended to gift all his property to Parties must be competent: The parties in a
a friend in Dubai. After Krishna's passing, lease agreement should be competent to
his legal heirs claimed ownership through enter into a contract. Lesser should be
inheritance under the Hindu Succession entitled to a property and have absolute
Act. Subsequently, Krishna's friend arrives rights over that property.
in India to claim the gifts. Which property Right of possession: Ownership rights are not
transfer is valid among the two? transferred in a lease, only the possession of
(A) The property transfer as a gift is valid the property is transferred.
since Krishna's intentions take Rent: Consideration for a lease can be taken
precedence, and he intended to gift it. in the form of a rent or premium.
(B) The property transfer as a gift is invalid Acceptance: Lessee, who is to get the
because it lacks proper legal stamping interest in the property after the lease, has to
and registration. accept the lease agreement along with the
(C) The property transfer as a gift is period and terms & conditions imposed on
invalid because Krishna's friend's claim the transfer.
came after Krishna's death. Period: Lease always takes place for a
(D) The property transfer through particular period which is to be specified in
inheritance is valid because the initial the lease agreement. It can be relaxed at
gift transfer was legally invalid, the option of the lessor.
leading to inheritance according to Section 106 provides for the duration of the
the Hindu Succession Act. lease in the absence of the lease agreement. It
lays down that in the absence of a contract,
Q15

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the lease can be ended by both parties to the person.


lease by issuing a notice to quit. When the lessee is termed insolventby the
Section 107 states about the lease how made. banks, and if the conditions provide for it, the
This section covers three aspects: lease will stand terminated.

1. When there is a lease of Immovable property 8. Expiry of Notice to Quit – When the notice to
for a term of 1 yearor more – This can only be quit by the lessor to the lessee expires, the
made by a registered deed. lease will also expire.
2. All other leases of Immovable property –
Q16 Sarah entered into a lease agreement
Can be either made by a registered deed or
with James for a commercial property.
an oral agreement or settlement along with
However, James later discovered that
the transfer of possession of that property.
Sarah was a minor at the time of entering
3. When the lease is of multiple properties that
the contract. Can James terminate the
require multiple deeds, it will be made by
lease agreement based on the lack of
both parties of the lease.
competency of one of the parties?
Section 111 states the determination of the (A) Yes, because Sarah's status as a minor
lease, which lays down how lease is terminated: renders her incompetent to enter into
1. Lapse of time– When the prescribed time of a contract, thus invalidating the lease
the lease expires, the lease is terminated. agreement.
2. Specified event– When there is a condition (B) No, because Sarah's minor status does
on time of lease depending upon the not affect her ability to accept the
happening of an event. terms of the lease agreement.
3. Interest – Lessor’s interest to lease the (C) Yes, because the lessor must have
property may cease, hence resulting in the absolute rights over the property,
termination of the lease. including the right to enter into a
4. Same owner– When the interest of both contract with competent parties.
lessor and lessee are transferred or vested in (D) No, because the lack of competency
the same person. only applies to the lessee, not the
5. Express Surrender– This happens when the lessor.
lessee ceases to have an interest in the
Q17 John leased a warehouse to Mark for a
property and comes into a mutual
period of three years. However, after two
agreement with the lessor.
years into the lease, John decided to sell
6. Implied Surrender– When the lessee enters
the warehouse to a third party. Can John
into a contract with another for the lease of
terminate the lease agreement with Mark
property, this is an implied surrender of the
due to the sale of the property?
existing lease.
(A) Yes, because the sale of the property
7. Forfeiture– There are three ways by which a
terminates the lessor's interest in
lease can be terminated:
leasing the property, thereby ending
When there is a breach of an express the lease agreement.
conditionby the lessee. The lessor may get (B) No, because the lease agreement is
the possession of the property back. binding regardless of changes in the
When the lessee renounces his characteror lessor's ownership of the property.
gives the title of the property to a third (C)

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Yes, because John's interest in the regardless of the lessee's breach of the
property ceases upon its sale, leading lease condition.
to the termination of the lease. (C) Yes, because Michael can reclaim
(D) No, because the lease agreement is possession of the land upon Peter's
independent of changes in the lessor's failure to fulfill his obligation of paying
ownership of the property unless rent.
specified otherwise in the agreement. (D) No, because termination of the lease
agreement due to breach of condition
Q18 Emma leased an apartment to Sarah for
requires explicit consent from both
a term of two years. However, during the
parties involved.
lease term, Emma decided to transfer her
ownership of the property to her sister. Q20 Alex leased a commercial space to
Can Sarah claim an implied surrender of Emma for a period of one year. However,
the lease agreement due to Emma's midway through the lease term, Emma
transfer of ownership? became insolvent and declared
(A) Yes, because the transfer of ownership bankruptcy. Can Alex terminate the lease
of the property implies a surrender of agreement based on Emma's insolvency?
the existing lease agreement. (A) Yes, because the lease agreement
(B) No, because the transfer of ownership provides for termination in case of
does not automatically terminate the lessee's insolvency.
lease agreement unless expressly (B) No, because termination of the lease
stated in the agreement. agreement due to insolvency requires
(C) Yes, because Sarah entered into a a court order.
contract with Emma's sister for the (C) Yes, because Emma's insolvency
lease of the property, indicating an constitutes a breach of an express
implied surrender of the existing lease. condition of the lease agreement.
(D) No, because an implied surrender of (D) No, because termination of the lease
the lease agreement requires mutual agreement requires explicit consent
agreement between the lessor and from both parties involved, regardless
lessee, which is absent in this situation. of Emma's insolvency.

Q19 Michael leased a piece of land to Peter Directions (21-25) Read the following passage
for agricultural purposes for a period of and answer the given questions.
five years. However, Peter failed to pay Section-58(a) of the Transfer of Property Act,
the rent for two consecutive years. Can 1882 has defined mortgage as the transfer of
Michael terminate the lease agreement an interest in a specific immovable property for
based on Peter's breach of the lease securing:
condition? The payment of money given to him or to be
(A) Yes, because Peter's failure to pay rent given through loan, or
constitutes a breach of an express An existing or future debt, or
condition of the lease agreement. The performance of an engagement which may
(B) No, because termination of the lease give rise to a pecuniary liability
agreement requires a court order The transferee or person in whose favour the
interest is being transferred is known as

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mortgagee. The person who has transferred the possession of that property, subject to the
interest in a specific immovable property is following conditions:
known as mortgagor. All conditions in the lease should be according
Every mortgage-deed leaves a right to the to the local laws and customs to prevent any
mortgagor and a corresponding liability for fraudulent transaction.
mortgagee and vice versa. Following are the The contract shall not contain any provision for
rights given to a mortgagor given by the the renewal of the lease.
Transfer of Property Act, 1882: Every such lease shall come into effect within a
Right to redemption period of six months from the date of its
Right to transfer mortgaged property to a third execution.
party instead of retransferring Where the mortgaged property is a building,
Right of inspection and production of the term of the lease should not exceed three
documents years in total.
Right to accession
Q21 Mortgagor A has entered into an
Right to improvements
agreement with Mortgagee B to transfer
Right to a renewed lease
their immovable property for securing an
Right to grant a lease
existing debt. According to the Transfer of
The right to redeem further grants three rights
Property Act, which of the following rights
to the mortgagor:
does Mortgagor A have concerning the
Right to end mortgage deal
improvements made to the property while
Right to transfer mortgaged property to his
it was in the possession of Mortgagee B?
name
(A) Mortgagor A is entitled to
To take back possession of property in case of
improvements made by Mortgagee B,
delivery of possession
regardless of the circumstances.
According to this right if the mortgaged
(B) Mortgagor A is liable to reimburse
property has been improved while it was in
Mortgagee B for any improvements
possession of mortgagee, then on redemption
made without prior permission.
and in the absence of any contract to the
(C) Mortgagor A can claim improvements
contrary mortgagor is entitled to such
made by Mortgagee B only if they
improvement. The mortgagor is not liable to
were made with public authority's
pay mortgagee unless:
permission.
Improvements made by the mortgagee were to
(D) Mortgagor A must compensate
protect the property or with the prior permission
Mortgagee B for all improvements,
of mortgagor.
regardless of permission.
Improvements were made by the mortgagee
with the permission of the public authority. Q22 Mortgagor X wishes to lease out a
This right was introduced by the Amendment building that is under mortgage.
Act of 1929. Prior to this right, the Transfer of According to the Transfer of Property Act,
Property Act did not allow a mortgagor to lease what is the maximum duration for which
out the mortgaged property on his own but Mortgagor X can lease out the building?
only with the permission of mortgagee. Now, a (A) Two years, subject to local laws and
mortgagor has the right to lease out the customs.
mortgaged property while he is in lawful (B)

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Three years, irrespective of the type of the Transfer of Property Act. Which
property. condition must be avoided when drafting
(C) Five years with the prior permission of the lease agreement?
the mortgagee. (A) The lease agreement must not contain
(D) Six months from the execution date of a provision for renewal.
the lease, as per legal provisions. (B) The lease term must not exceed three
years for a building.
Q23 Mortgagee Y has made substantial
(C) The lease agreement must be in
improvements to the mortgaged
accordance with local laws and
property without obtaining permission
customs.
from Mortgagor Z. However, the
(D) The lease agreement should come
improvements were necessary to protect
into effect within six months from
the property from damage. According to
execution.
the Transfer of Property Act, how does
this situation affect Mortgagor Z's Directions (26-30) Read the following passage
liability? and answer the given questions.
(A) Mortgagor Z is not liable to reimburse Section 122 of Transfer of Property Act defines a
Mortgagee Y for any improvements. gift as the transfer of an existing moveable or
(B) Mortgagor Z is responsible for immovable property. Such transfers must be
compensating Mortgagee Y for all made voluntarily and without consideration.
improvements. The transferor is known as the donor and the
(C) Mortgagor Z is only liable if the transferee is called the donee. The gift must be
improvements were made with public accepted by the donee. This Section defines a
authority's permission. gift as a gratuitous transfer of ownership in
(D) Mortgagor Z must reimburse some property that is already existing. The
Mortgagee Y as improvements were definition includes the transfer of both
made to protect the property. immovable and moveable property.
The donor must be a competent person, i.e., he
Q24 Mortgagor P has redeemed the
must have the capacity as well as the right to
mortgaged property and is entitled to
make the gift. If the donor has the capacity to
certain rights. Among these, which right
contract then he is deemed to have the
allows Mortgagor P to take back
capacity to make the gift. This implies that at
possession of the property upon its
the time of making a gift, the donor must be of
delivery?
the age of majority and must have a sound
(A) Right to end the mortgage deal.
mind. Registered societies, firms, and
(B) Right to transfer the property to
institutions are referred to as juristic persons,
another party.
and they are also competent to make gifts. Gift
(C) Right to improvements made by the
by a minor or insane person is void. Besides
mortgagee.
capacity, the donor must also have the right to
(D) Right to inspection and production of
make a gift. The right of the donor is
documents.
determined by his ownership rights in the
Q25 Mortgagor M is in lawful possession of a property at the time of the transfer because
mortgaged building. They intend to lease gift means the transfer of the ownership.
it out under the conditions specified by

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Donee does not need to be competent to X gifted cryptocurrencies to Y via a gift


contract. He may be any person in existence at deed on Diwali. Y did not acknowledge
the date of making the gift. A gift made to an the gift, so X made a will for Z to inherit
insane person, or a minor, or even to a child the cryptocurrencies upon X's death. X
existing in the mother’s womb is valid subject to has now passed away, and Y has
its lawful acceptance by a competent person accepted the gift deed, while Z also
on his/her behalf. Juristic persons such as firms, claims the cryptocurrencies based on the
institutions, or companies are deemed as will. Who should rightfully receive the
competent and gift made to them are valid. cryptocurrencies?
However, the donee must be an ascertainable (A) The gift deed is invalid because Y did
person. The gift made to the general public is not initially accept it.
void. If ascertainable, the donee may be two or (B) The gift deed is valid as Y eventually
more persons. accepted it.
There are the following five essentials of a valid (C) Z should receive the cryptocurrencies
gift: as the will is valid.
(D) None of the above.
1. Transfer of ownership
2. Existing property Q28 Aruna transferred her entire property as
3. Transfer without consideration a gift to Anu in exchange for love and
4. Voluntary transfer with free consent affection. Is this transfer legally valid?
5. Acceptance of the gift (A) Yes, it is valid since love and affection
Section 123 of the Transfer of Property Act deals cannot be considered as
with the formalities necessary for the consideration in this transfer.
completion of a gift. The gift is enforceable by (B) No, it is not valid because love and
law only when these formalities are observed. affection can be considered as a
This Section lays down two modes for effecting consideration.
a gift depending upon the nature of the (C) Yes, it is valid as it fulfills all the
property. For the gift of immovable property, essential requirements of a valid gift.
registration is necessary. In case the property is (D) Both A and C.
movable, it may be transferred by the delivery
Q29 A gifted a flat to B, and B began
of possession.
collecting rent for it. However, A did not
Q26 A, the donor, willingly transferred a complete the registration process and
property as a gift to B when B threatened tragically passed away. A's legal heirs
to sue A in another property dispute. claim rights to the property due to the
What is the legal status of this property absence of registration. How should this
transfer? situation be resolved?
(A) Void due to undue influence, as B used (A) The legal heirs' claim would succeed
threats to coerce A. as registration is mandatory for
(B) Valid since A made the transfer immovable property.
willingly. (B) The gift to B is valid as it meets all the
(C) Voidable at the option of A. essential requirements of a valid gift.
(D) Voidable at the option of B. (C) A's intention is crucial, and it is implied
that A intended to transfer the
Q27

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property to B, making the gift valid. The transfer is valid since timing is not
(D) B's explicit acceptance of the gift essential.
precludes any rights for A's legal heirs. (B) The transfer is valid as it satisfies all
the essential requirements of a valid
Q30 Shizuka, the donor, aged 17, transferred
gift.
her inherited property to her 19-year-old
(C) The transfer is valid because the
friend, Nobita, as a gift. Nobita accepted
donor's age is irrelevant, and the
the gift on her 18th birthday. Is this
donee turned 18 when the gift was
transfer legally valid?
accepted.
(A)
(D) None of the above.

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Answer Key
Q1 (B) Q16 (A)

Q2 (A) Q17 (D)

Q3 (C) Q18 (B)

Q4 (C) Q19 (A)

Q5 (C) Q20 (B)

Q6 (B) Q21 (C)

Q7 (B) Q22 (B)

Q8 (B) Q23 (D)

Q9 (B) Q24 (A)

Q10 (A) Q25 (A)

Q11 (B) Q26 (C)

Q12 (B) Q27 (C)

Q13 (A) Q28 (A)

Q14 (D) Q29 (C)

Q15 (C) Q30 (D)

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Hints & Solutions


Q1. Text Solution: not relevant to the issue of the transferability of
Correct Answer: b) The transfer is invalid the right to re-enter.
because it's a mere chance of receiving the Hence, option (a) is correct.
property. Q3. Text Solution:
Explanation: As per Clause (a) of Section 6 of Correct Answer: c) The transfer is invalid
the Transfer of Property Act, the transfer of a because easements cannot be transferred.
mere chance of a person to get a property is Explanation: Clause (c) of Section 6 states that
prohibited. In this case, Arun's expectation of easements cannot be transferred. The right of
inheriting Chandini's property is a mere chance way is an example of an easement. Therefore,
and not a present interest. Therefore, the X's transfer of the right of way to Z is invalid.
transfer of this expectation to Bhushan is Incorrect Options:
invalid. a) This option is incorrect because the transfer
Incorrect Options: is invalid due to the nature of the easement,
a) This option is incorrect because the transfer not its value or type.
is invalid due to the nature of the expectation, b) This option is incorrect because the
not because of its legitimacy. transferability of the easement is not
c) This option is incorrect because the value of determined by its commonness.
the property is not relevant to its transferability. d) This option is incorrect because Y's consent is
d) This option is incorrect because the consent not relevant to the transferability of the
of Chandini is not the issue; the problem lies in easement.
the transfer of a mere chance. Hence, option (c) is correct.
Hence, option (b) is correct.
Q4. Text Solution:
Q2. Text Solution: Correct Answer: c) The transfer is invalid
Correct Answer: a) The transfer is invalid because a personal right of enjoyment cannot
because the right to re-enter cannot be be transferred.
transferred separately from the land. Explanation: Clause (d) of Section 6 states that
Explanation: Clause (b) of Section 6 states that an interest restricted in its enjoyment to the
the right of re-entry cannot be transferred transferor personally cannot be transferred. In
apart from the land itself. In this case, B is this case, B's personal right of enjoyment of the
attempting to transfer the right to re-enter house cannot be transferred to C. Therefore,
without transferring the land itself. Thus, the the transfer is invalid.
transfer of the right to re-enter to C is invalid. Incorrect Options:
Incorrect Options: a) This option is incorrect because the transfer's
c) This option is incorrect because the validity validity is not determined by the involvement of
of the transfer is not solely determined by the A's house.
fact that it involves a lease of land. b) This option is incorrect because the
b) This option is incorrect because the ability of transferability of personal rights of enjoyment is
B to transfer the right is not the determining not based on their nature but on the fact that
factor; the nature of the right itself is at issue. they are personal.
d) This option is incorrect because A's consent is d) This option is incorrect because A's consent is

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not the issue; the transfer's validity depends on Hence, option B is correct.
the nature of the right being transferred. Q7. Text Solution:
Hence, option (c) is correct. Answer: B) No, because it involves an
Q5. Text Solution: actionable claim.
Correct Answer: c) The transfer is invalid Explanation: An actionable claim is not
because rights to maintenance cannot be considered as "property" under the Transfer of
transferred. Property Act. Therefore, transferring the right to
Explanation: Clause (dd) of Section 6 states receive a pending payment (an actionable
that the right to maintenance cannot be claim) is not valid under this act.
transferred. This is because such a right is for Option A: This is incorrect because the type of
the personal benefit of the concerned person. property being movable is not the main
Therefore, D's transfer of the right to receive concern here.
maintenance to F is invalid. Option C: This is incorrect because the
Incorrect Options: presence of witnesses does not determine the
a) This option is incorrect because the transfer's validity of transferring an actionable claim.
validity is not determined by the nature of the Option D: This is incorrect because the absence
right being transferred. of an explicitly mentioned payment amount is
b) This option is incorrect because the consent not the primary issue here; the nature of the
of E is not the determining factor in the property being transferred is the main concern.
transfer's validity. Hence, option B is correct.
d) This option is incorrect because the Q8. Text Solution:
relationship between D and F does not impact Answer: B) Written agreement signed by both
the transferability of the right to maintenance. parties.
Hence, option (c) is correct. Explanation: As per the information provided,
Q6. Text Solution: the value of the movable property (land)
Answer: B) No, because she is not 18 years old. exceeds 100 rupees. In such cases, a written
Explanation: According to the provided agreement signed by both parties is necessary
information, Sarah is 16 years old. To be eligible for a valid transfer under the Transfer of
for property transfer, an individual must be Property Act.
above 18 years of age. Since Sarah is not of the Option A: This is incorrect because for
required age, she is not eligible to perform the properties worth more than 100 rupees, a
property transfer. verbal agreement is not sufficient.
Option A: This is incorrect because being of Option C: This is incorrect because witnessing
sound mind is one of the criteria, but being by neighbors is not the primary requirement for
above 18 years of age is a more fundamental the transfer of property.
requirement. Option D: This is incorrect because the value of
Option C: This is incorrect because the the gift property is what matters, not whether
ancestral nature of the property does not the transfer is a gift or not.
override the requirement for the transferor to be Hence, option B is correct.
above 18 years of age. Q9. Text Solution:
Option D: This is incorrect because being the Answer: B) No, because the property must be
real owner is not the only criterion; being of the transferred to a living person first.
appropriate age is also crucial.

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Explanation: Property cannot be transferred 50,000 in return. This significant disparity in


directly to an unborn child. It must first be consideration suggests that Sheela would
transferred to a living individual, who will then suffer a substantial loss in value, which could
hold the property in trust for the unborn child. indicate that the transaction is not a fair
This is known as the rule against perpetuity. exchange. In cases of exchange it requires that
Option A: This is incorrect because family consideration in a transaction should be
intention is not the main concern here. reasonable and not result in a substantial
Option C: This is incorrect because a written disadvantage to one party.
consent for the unborn child is not the solution; Option (a) is incorrect as it suggests that the
the property needs to be transferred to a living transfer is valid because both parties mutually
person first. agreed to it. While mutual agreement is an
Option D: This is incorrect because the issue is essential element in many transactions, there
not about transferring within the family, but are additional legal principles to consider,
rather the rule against transferring directly to an particularly in the context of property transfers.
unborn child. Option (c) is incorrect as it suggests that the
Hence, option B is correct. transfer is valid because the minimal

Q10. Text Solution: consideration is not a concern, and the transfer

Answer: A) Yes, because it involves an was executed validly. However, this option does

immovable property lease exceeding a year. not accurately reflect legal principles related to

Explanation: According to the information property transfers. In case of exchange, there

provided, the office building is on lease for more should generally be adequate consideration,

than a year. For transfers of immovable meaning that what is given and received

property leases exceeding a year, a written should have reasonably equivalent value.

agreement is required under the Transfer of Option (d) is incorrect as Sheela is transferring a

Property Act. property worth 1 lakh rupees in exchange for

Option B: This is incorrect because the jewelry worth 50,000 rupees, which represents a

corporate nature of the transfer does not significant disparity in value. Legal principles

determine whether a written agreement is often require that consideration in a transaction

needed. should be reasonably fair and not result in a

Option C: This is incorrect because the value of substantial disadvantage to one party.

the building is not the determining factor in this Hence, option (b) is correct.

context. Q12. Text Solution:


Option D: This is incorrect because the Option (b) is the correct answer as the
verbal/written agreement distinction is based registration of property transactions is a critical
on the nature of the transfer, not whether it's a legal formality. Failure to register a property
corporate transfer or not. sale can lead to the sale being considered
Hence, option A is correct. legally invalid. While constructive delivery and

Q11. Text Solution: intent are important aspects of a property

The correct answer is option (b) since in transfer transaction, the requirement for registration is a

of property which relates to “exchange” there fundamental legal requirement. Registration

should be adequate consideration. In this case, provides legal evidence of the sale and is

Sheela transferred a property worth rupees 1 essential to establish the transfer of ownership

lakh but received jewelry worth only rupees rights. Option (b) correctly identifies the

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necessity of compliance with legal formalities, Option (b) is incorrect as it suggests that the
including registration, for a property sale to be authorization given to Mehta by Jethalal
legally valid. implies a Power of Attorney, which is a legal
Option (a) is incorrect as it suggests that the document that grants someone the authority
sale is valid because there was constructive to act on another person's behalf. While
delivery from A's part, and A's intention is crucial. authorization is important, it doesn't necessarily
While constructive delivery and intent are imply a Power of Attorney unless explicitly
important aspects of a property transaction, stated. A Power of Attorney document is a
the lack of registration can still render the sale distinct and formal legal requirement to grant
legally invalid such authority.
Option (C) is incorrect because while it's true Option (c) is incorrect as it emphasizes Mehta's
that registration can often be completed after good faith intentions to benefit Jethalal's profit
the sale, this option does not fully address the as a basis for the validity of the second sale.
legal requirements involved in property However, the legality of a property sale
transactions. Registration is a fundamental and generally depends on the proper legal
mandatory requirement for property sales. authority of the person making the sale. Good
Delaying the registration may be allowed in intentions alone may not be sufficient to
some cases, but the initial steps to complete validate a sale if the person lacked the legal
the registration process are typically required to authority to conduct it.
be initiated promptly after the sale. Option (d) is incorrect as it suggests that
Option (d) is incorrect as it states that the sale because the second sale aligns with Jethalal's
is legally valid because there was constructive business practices, it should be considered
delivery from A's part, and registration can be valid. However, the legality of a property sale is
completed later. While this option combines primarily determined by legal authority, not
elements of both (a) and (c), it doesn't fully business practices. Even if a sale aligns with
address the legal requirements for property business practices, it still needs to adhere to
sales. Constructive delivery and intent are legal requirements and proper authorization.
important factors in property transactions, but Hence, option (a) is correct.
registration is a crucial legal formality in many Q14. Text Solution:
jurisdictions. Simply having constructive delivery Option (d) is the correct answer as it correctly
and the potential for future registration does identifies that the property transfer through
not ensure the validity of the sale under inheritance is valid because the initial gift
standard legal practices. transfer was legally invalid. When Krishna's
Hence, option (b) is correct. friend arrived after Krishna's death to claim the
Q13. Text Solution: gifts, it was recognized that the initial gift
Option (a) is the correct answer as it correctly transfer did not meet the legal requirements,
identifies that the second sale by Mehta is making it legally invalid. Therefore, the legal
invalid because he lacked the proper legal heirs inherit the property under the provisions of
authority to transfer the property. Mehta was the Hindu Succession Act.
not appointed as Jethalal's Power of Attorney, Option (a) is incorrect as it suggests that the
and therefore, he did not have the legal gift transfer is valid based on Krishna's
capacity to make such a transaction on behalf intentions, but it overlooks the legal
of Jethalal. requirements such as proper stamping and

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registration that are typically necessary for a Q16. Text Solution:


gift to be legally valid. Explanation: In this scenario, Sarah's status as a
Option (b) is incorrect as it accurately points minor makes her legally incompetent to enter
out that the gift transfer lacks proper legal into a contract. Therefore, James can terminate
stamping and registration, which are essential the lease agreement because one of the
formalities for many property transfers. This essential requirements of a lease contract is
makes the initial gift legally invalid. that the parties must be competent. Since
Option (c) renders to be incorrect as it mentions Sarah is legally unable to enter into contracts,
the timing of Krishna's friend's claim but doesn't the lease agreement would be considered void
address the legal validity of the gift transfer, ab initio (from the beginning).
which is the primary consideration in Option (b) is incorrect because Sarah's minor
determining property rights in this scenario. status does affect her ability to enter into a
Hence, option (d) is correct. legally binding contract.

Q15. Text Solution: Option (c) is incorrect because while it is true

The correct answer is option (c) as X has that the lessor must have absolute rights over

authorized his wife to transfer their entire the property, the issue here is the competency

property to their children as a gift upon his of one of the parties entering into the contract.

death. This type of property transfer is typically Option (d) is incorrect because the lack of

classified as a transfer of property through competency applies to both parties involved in

Power of Attorney. the contract, not just the lessee.

Option (a) is incorrect as it refers to a transfer of Hence, the answer is A.

property through a Gift deed, which involves a Q17. Text Solution:


direct gift from one party to another during Explanation: The sale of the property by John
their lifetime. In this scenario, X's intention is for does not automatically terminate the lease
the property to be transferred upon his death, agreement between John and Mark. Unless
which aligns more with inheritance. there is a specific provision in the lease
Option (b) is incorrect as this option suggests agreement allowing termination upon the sale
that the property transfer is occurring through of the property, the lease remains binding on
inheritance, which would be applicable if the the new owner. The lease agreement is an
property is being passed down to the children independent contract that continues to be
upon X's death without any specific instructions enforceable despite changes in the lessor's
or authorization. However, in the scenario ownership of the property.
described, X is alive and authorizing his wife to Option (a) is incorrect because the sale of the
transfer the property, so it's not a transfer property alone does not terminate the lease
through inheritance. agreement unless specified in the contract.
Option (d) is incorrect as it suggests that the Option (c) is incorrect because the lease
property transfer falls under all three agreement remains valid even if the lessor's
classifications, but in this specific scenario, the interest in the property changes hands.
most appropriate classification is a transfer of Option (b) is incorrect because it provides a
property through power of attorney, as it aligns blanket statement that the lease agreement is
with X's intention for the property to pass to binding regardless of changes in the lessor's
their children upon his death. ownership of the property. While this statement
Hence, option (c) is correct. is generally true, there can be exceptions or

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specific circumstances where a change in Option (c) is incorrect because while Michael
ownership might affect the lease can reclaim possession of the land upon Peter's
agreement.For example Some lease failure to pay rent, the termination of the lease
agreements may contain clauses or provisions agreement is based on the breach of condition.
that allow for termination of the lease upon Option (d) is incorrect because termination of
sale of the property. the lease agreement due to breach of
Hence, the answer is D. condition does not require explicit consent from

Q18. Text Solution: both parties involved.

Explanation: In this scenario, Sarah cannot Hence, the answer is A.

claim an implied surrender of the lease Q20. Text Solution:


agreement due to Emma's transfer of Explanation: Emma's insolvency alone does not
ownership. Unless the lease agreement automatically terminate the lease agreement.
explicitly states that the transfer of ownership According to Section 111, termination of the
will result in the termination of the lease, the lease agreement due to insolvency requires a
agreement remains valid. An implied surrender court order. Therefore, Alex cannot unilaterally
of the lease agreement requires mutual terminate the lease agreement based on
agreement between the lessor and lessee, Emma's insolvency.
which is not evident in this situation. Option (a) is incorrect because termination of
Option (a) is incorrect because the transfer of the lease agreement due to insolvency requires
ownership does not automatically imply a court order, not just a provision in the lease
surrender of the lease agreement. agreement.
Option (c) is incorrect because entering into a Option (c) is incorrect because Emma's
contract with another party for the lease of the insolvency does not automatically constitute a
property does not necessarily imply surrender of breach of an express condition of the lease
the existing lease agreement. agreement.
Option (d) is incorrect because mutual Option (d) is incorrect because termination of
agreement is necessary for an implied surrender the lease agreement due to insolvency does
of the lease agreement, which is not present in not necessarily require explicit consent from
this scenario. both parties involved.
Hence, the answer is B. Hence, the answer is B.

Q19. Text Solution: Q21. Text Solution:


Explanation: Peter's failure to pay rent for two Answer: C) Mortgagor A can claim
consecutive years constitutes a breach of an improvements made by Mortgagee B only if
express condition of the lease agreement. they were made with public authority's
According to Section 111, a lease can be permission.
terminated when there is a breach of an Explanation: As per the provided passage,
express condition by the lessee. Therefore, Mortgagor A is entitled to claim improvements
Michael can terminate the lease agreement made by Mortgagee B, except in cases where
due to Peter's breach of the lease condition. the improvements were made by Mortgagee B
Option (b) is incorrect because termination of with the permission of a public authority. This
the lease agreement due to breach of condition is highlighted in the passage as a
condition does not necessarily require a court restriction on Mortgagor A's right to claim
order. improvements.

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Option A is incorrect because the entitlement improvements, even without prior


to improvements is not unconditional, but permission.Hence, Mortgagor Z must reimburse
rather depends on the circumstances. Mortgagee Y as improvements were made to
Option B is incorrect because Mortgagor A is protect the property.
not liable to reimburse for all improvements Option A is incorrect because it doesn't
made without prior permission. acknowledge the importance of the exceptions
Option D is incorrect because it doesn't aspect.
consider the permission from a public authority Option B is incorrect because the passage
as a condition. clearly states that Mortgagor Z is not liable for

Q22. Text Solution: all improvements.

Answer: B) Three years, irrespective of the type Option C is incorrect because it doesn't aligns

of property. with the question as there is no relation to

Explanation: According to the passage, where public authority in the present case.

the mortgaged property is a building, the term Q24. Text Solution:


of the lease should not exceed three years in Answer: A) Right to end the mortgage deal.
total. This is an important provision for Explanation: The right to end the mortgage
Mortgagor X to consider when leasing out the deal grants Mortgagor P the ability to redeem
property. the mortgaged property and conclude the
Option A is incorrect because the maximum mortgage arrangement. This right allows
lease duration for a building is specifically Mortgagor P to take back full possession of the
mentioned as three years. property upon redemption.
Option C is incorrect because the passage Option B is incorrect because transferring the
doesn't mention a requirement for mortgagee's property to another party doesn't inherently
permission for the duration of the lease. involve taking back possession.
Option D is incorrect because the lease Option C is incorrect because the right to
agreement should come into effect within six improvements doesn't directly involve taking
months, but this doesn't relate to the maximum back possession.
duration of the lease. Option D is incorrect because the right to

Q23. Text Solution: inspection and production of documents

Answer: D) Mortgagor Z must reimburse doesn't pertain to taking back possession.

Mortgagee Y as improvements were made to Q25. Text Solution:


protect the property. Answer: A) The lease agreement must not
Explanation: According to the passage, if contain a provision for renewal.
improvements were made by the mortgagee to Explanation: According to the passage, the
protect the property or with the prior permission lease contract shall not contain any provision
of the mortgagor, the mortgagor is liable to for the renewal of the lease. This restriction
such improvements. In this scenario, the ensures that the lease agreement doesn't have
situation aligns with an exception under the provisions that would extend the lease beyond
Transfer of Property Act where improvements its initial term.
were made by the mortgagee to protect the Option B is incorrect because the lease term for
property from damage. According to this a building is mentioned as not exceeding three
exception, the mortgagor may be liable to years, which is a different restriction.
reimburse the mortgagee for such Option C is incorrect because the lease

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agreement must be in accordance with local Option (d) is incorrect since option (c) is correct.
laws and customs, which is a valid requirement. Hence, option (c) is correct.
Option D is incorrect because the lease Q28. Text Solution:
agreement coming into effect within six months Option (a) is the correct answer since in a gift
is also a valid requirement. transaction, consideration typically refers to
Q26. Text Solution: something of value exchanged for the gift. In
The correct option is (c), the transfer may be this case, since Aruna transferred her property
considered voidable because A made the to Anu purely out of love and affection without
transfer under the influence of B's threats. A has expecting any tangible consideration in return,
the option to void the transfer if they choose to it fulfills the essential requirements of a valid
do so. gift. So, option (a) is the correct answer.
Option (a) is incorrect as, though it's true that B Option (b) states that the transfer is not valid
used threats to influence A, this situation is because love and affection can be considered
more accurately described as undue influence, as a consideration. This is not accurate in the
which typically renders a contract or transfer context of gift transactions. In gift transactions,
voidable at the option of the influenced party, love and affection are generally not considered
in this case, A. So, option (a) is not incorrect. as a legal consideration. Therefore, option (b) is
Option (b) is incorrect as this option is not incorrect.
entirely accurate because although A made Option (c) states that the transfer is valid as it
the transfer, it was done under the influence of fulfills all the essential requirements of a valid
threats from B. Therefore, it may not be gift. This statement is generally correct. If the
considered a completely willing transfer. transfer meets all the essential requirements of
Option (d) is incorrect as it is not generally a valid gift, it should be considered valid.
applicable in cases of undue influence. However, it's important to understand that the
Voidability is typically granted to the party who essential requirements of a valid gift typically
was unduly influenced, which in this case, is A, do not include the need for monetary or
not B. tangible consideration like love and affection.
Hence, option (c) is correct. Therefore, while option (c) is somewhat

Q27. Text Solution: accurate, option (a) is a more precise and direct

Option (c) is correct as the gift deed may have answer to the question as it addresses the

been initially unacknowledged, but it became specific issue of love and affection not being

valid when Y eventually accepted it. However, considered as consideration in gift

since X's will is also valid, Z should rightfully transactions.

receive the cryptocurrencies as per the terms of Option (d) is incorrect because option (C) does

the will. So, option (c) is the correct choice. not hold to be correct.

Option (a) is not correct as the gift deed Hence, option (a) is correct.

becomes valid when Y eventually accepts it, so Q29. Text Solution:


it's not inherently invalid due to the initial lack of Option (c) is correct because In this scenario,
acknowledgment. while registration is typically required for the
Option (b) is not correct since the gift deed was transfer of immovable property, the absence of
accepted post X’s death which is not a valid registration alone does not necessarily
acceptance. The acceptance has to be made invalidate the gift. A's intention to transfer the
before the death of the donor. property to B is crucial, and if it can be implied

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from A's actions and the circumstances, the gift especially if there are specific legal or
may still be considered valid. B's explicit procedural requirements related to property
acceptance of the gift also strengthens the transfer and succession.
case for the validity of the gift. Therefore, Hence, Option (c) is correct.
option (c) best represents the legal principle Q30. Text Solution:
that A's intention and implied transfer are The correct answer is option (d) since none of
important factors in determining the validity of the above options are correct. “The transfer is
the gift. valid because the donee's age is irrelevant, and
Option (a) is incorrect because while the donor turned 18 when the gift was
registration is generally required for the transfer accepted” This would have been the correct
of immovable property, it may not always answer because it takes into account both the
invalidate a gift if other elements of a valid gift donor's age and the fact that Nobita accepted
are present. Registration alone does not the gift after reaching the legal age of majority,
necessarily determine the validity of a gift. ensuring that the transfer is legally valid.
Option (b) is incorrect because the question Option (a) is incorrect because, while timing
mentions that A did not get the registration may not always be essential for gift validity, in
done for the property. While the absence of this particular scenario, the donor's age is a
registration does not automatically invalidate a relevant consideration
gift, it can sometimes create legal Option (b) is incorrect because Shizuka was 17
complications, especially in the context of years old at the time of making the gift. The
immovable property. In practice, the absence of donor's age is an important factor to consider
registration can raise questions about the because minors (individuals under the legal age
completeness and enforceability of the transfer, of majority) may have limited capacity to enter
depending on the specific legal requirements in into contracts, including gift transactions,
the jurisdiction in question. Therefore, while without the consent or approval of their legal
option (b) is a valid legal principle, the specific guardians.
situation described in the question suggests Option (c) is incorrect as Shizuka was underage
that the absence of registration may be a (17 years old) at the time of making the gift, it's
factor to consider, and it does not definitively essential to consider the legal age of the donor,
establish the validity of the gift. as it has legal implications. Individuals under 18
Option (d) is incorrect since B's acceptance of do not have the legal capacity to make a gift
the gift is indeed a crucial factor in establishing without parental consent or approval. Donors
the validity of the gift. However, it doesn't age cannot be immaterial in the given context.
necessarily preclude all rights for A's legal heirs, Hence option (d) is correct.

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