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      Question

      Under the Indian Trusts Act, 1882, which of the

      following is NOT a ground for the extinguishment of a trust?  
      A When its purpose is completely fulfilled Correct Answer Incorrect Answer
      B When its purpose becomes unlawful Correct Answer Incorrect Answer
      C When the fulfilment of its purpose becomes impossible Correct Answer Incorrect Answer
      D When the trust property is sold at market value Correct Answer Incorrect Answer
      E When a revocable trust is expressly revoked Correct Answer Incorrect Answer

      Solution

      As per Section 77 , a trust is extinguished in the following cases:  

      • When its purpose is completely fulfilled (clause a).  
      • When its purpose becomes unlawful (clause b).  
      • When its purpose becomes impossible due to destruction of trust property or otherwise (clause c).  
      • When a revocable trust is expressly revoked (clause d).  
      The sale of trust property at market value does not extinguish a trust unless it directly affects the trust's purpose.  

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