Law Legal Studies

Property and Trust Law

1,863 Questions

Property and trust law covers ownership rights, leases, adverse possession, and the transfer of assets. These legal principles are fundamental for judiciary exams, UPSC, and state PSCs. Practice these questions to understand property rights and related legal procedures thoroughly.

Adverse possession principlesFee simple absolute ownershipMesne profits legal codeHOA community regulationsReal estate appraisal rules

Property and Trust Law Questions

Multiple choice

A borrower has an immovable property and he is not repaying the loan. The bank wants to recover the loan. Then, the bank can

  1. take possession of the security for the loan

  2. manage the same or appoint any person to manage the same

  3. sell or lease or assign the right over the security

  4. All of the above

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (also known as the SARFAESI Act) is an Indian law. It allows banks and other financial institutions to auction residential or commercial properties to recover loans. Bank may take recourse to one or more of the above measures.

Multiple choice

If the provisions of Transfer of Property Act and SARFAESI Act relating to an immovable property are different,

  1. provisions of Transfer of Property Act would prevail

  2. provisions of SARFAESI Act would prevail

  3. provisions of Transfer of Property Act or SARFAESI Act would prevail at the discretion of the creditor

  4. provisions of Transfer of Property Act or SARFAESI Act would prevail at the discretion of the debtor
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The provisions of the SARFAESI Act will prevail in case of any conflict and inconsistency of any provision therein with any provisions of the Transfer of Property Act and the CPC. Thus, option 2 is the correct answer.

Multiple choice

Lien of unpaid seller is terminated when

  1. the buyer gets possession of the goods

  2. the seller gets possession of the goods

  3. the buyer leaves the possession of the goods

  4. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The unpaid seller of goods loses his lien or right of retention thereon – (a) when he delivers the goods to a carrier or other bailee or custodier for the purpose of transmission to the buyer without reserving the right of disposal of the goods; (b) when the buyer or his agent lawfully obtains possession of the goods; or (c) by waiver thereof. 

Multiple choice

Which of the following rights is not available to unpaid seller where the property has passed on to the buyer?

  1. A lien on goods for price while he is in possession of the goods

  2. In case of insolvency of the buyer, a right of stopping the goods in transit after he has parted with the possession of them

  3. A right of resale

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Subject to the provisions of Sale of Goods Act, 1930 and of any law for the time being in force, notwithstanding that the property in the goods may have passed on to the buyer, the unpaid seller of goods, as such, has by implication of law — (a) a lien on the goods for the price while he is in possession of them; (b) in case of the insolvency of the buyer, a right of stopping the goods in transit after he has parted with the possession of them; (c) a right of resale as limited by this Act.

Thus, option (4) is the correct answer.

Multiple choice

Clayton's case is referred commonly to the

  1. Right of set off

  2. Right of lien

  3. Right of appropriation

  4. None of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Clayton's Case (1816) established the rule of appropriation in banking - when a customer has multiple debts and makes a payment without specifying which debt it applies to, the bank applies it to the earliest debt chronologically (first in, first out). This principle is fundamental to appropriation of payments.

Multiple choice

What does the term 'Escheat' mean?

  1. Transfer of property to state

  2. Forfeiture of property

  3. Property in wrongful possession

  4. Sale from property wrongfully possessed

  5. None of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When an individual dies and there is no legal heir and will which relates to his property, then according to the provision of Hindu Succession act, the property is transferred to the state. This is known as escheat.

Multiple choice

When can a gift be revoked under Sunni law?

  1. Before the delivery of possession

  2. After the delivery of possession

  3. Anytime

  4. All of the above

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A gift can be revoked by the donor anytime whether before or after the delivery of possession of the gift is made.

Multiple choice

What do you mean by 'Mushaa' under Muslim law?

  1. Undivided share in property

  2. Divided share in property

  3. Compensation in lieu of share

  4. Both (2) and (3)

  5. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under Muslim law, Mushaa means an undivided share in property.

Multiple choice

Coparcenary property is known as

  1. joint family property

  2. self acquired property

  3. separate property

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is the joint property in Hindu undivided family. Thus (1) is the correct option. It is not the self acquired or separate property.