New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Which of the following is NOT a valid purpose for

    creating a trust under the Indian Trusts Act, 1882? 
    A For the benefit of a minor Correct Answer Incorrect Answer
    B For opposing public policy Correct Answer Incorrect Answer
    C For the advancement of education Correct Answer Incorrect Answer
    D For the relief of poverty Correct Answer Incorrect Answer
    E For the benefit of animals Correct Answer Incorrect Answer

    Solution

    Under Section 4 of the Indian Trusts Act, 1882, a trust must be created for a lawful purpose. If the purpose of the trust is unlawful, as defined under Section 23 of the Indian Contract Act, 1872, it is void. Examples of unlawful purposes include those that are fraudulent, cause harm to others, or are immoral or opposed to public policy.

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