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

    Question

    A contract for sale ______.

    A Does not by itself create charge in the property. Correct Answer Incorrect Answer
    B Does not by itself create interest in the property Correct Answer Incorrect Answer
    C Both A and B. Correct Answer Incorrect Answer
    D Creates transfer of interest in the property Correct Answer Incorrect Answer
    E Creates transfer of interest partially. Correct Answer Incorrect Answer

    Solution

    As per s. 54 of the TP Act. 54. “Sale” defined.—“Sale” is a transfer of ownership in exchange for a price paid or promised or part-paid and part-promised. Sale how made.—Such transfer, in the case of tangible immoveable property of the value of one hundred rupees and upwards, or in the case of a reversion or other intangible thing, can be made only by a registered instrument. In the case of tangible immoveable property of a value less than one hundred rupees, such transfer may be made either by a registered instrument or by delivery of the property. Delivery of tangible immoveable property takes place when the seller places the buyer, or such person as he directs, in possession of the property. Contract for sale.—A contract for the sale of immoveable property is a contract that a sale of such property shall take place on terms settled between the parties. It does not, of itself, create any interest in or charge on such property.

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