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Question

In the context of a lease, what happens if a lessee or under-lessee remains in possession of the property after the determination of the lease, and the lessor or his legal representative accepts rent or otherwise assents to the lessee's continuing possession?

A The lease is terminated immediately Correct Answer Incorrect Answer
B The lease is extended for a fixed term Correct Answer Incorrect Answer
C The lease is renewed based on a new agreement Correct Answer Incorrect Answer
D The lease is automatically renewed from year to year or from month to month, as per the original lease terms, in the absence of an agreement to the contrary Correct Answer Incorrect Answer
E None of the above Correct Answer Incorrect Answer

Solution

Transfer of Property Act Section 116. Effect of holding over—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.

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