Law Legal Studies

Property and Trust Law

1,910 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

Which of the following is not an essential requirement for a person to be called holder in due course?

  1. He should be in possession of the instrument.

  2. Possession must have been taken for a valuable consideration.

  3. Possession must have been obtained in good faith without any notice of defect in the title of the transferor.

  4. It must be an order cheque only.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

According to Section 9, “Holder in due course” means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque if payable to bearer, or the payee or endorsee thereof, if payable to order, before the amount mentioned in it became payable and without having sufficient cause to believe that any defect existed in the title of the person from whom he derived his title.

The essential qualifications of a “holder in due course” may be summed up as follows:

  1. He must be a holder for valuable consideration. All the prerequisites of consideration should be met so as to result in a valuable consideration.
  2. That he became the holder of the instrument before its maturity. Thus, the person who takes a negotiable instrument after maturity does not become a holder in due course.
  3. That the instrument should be complete and regular on the face of it. Face here includes the back also.
  4. The last requirement is that the holder should have received the instrument in “good faith”. There are two methods of ascertaining a person’s good faith, “subjective” and objective”. Thus, option 4 is the correct answer. 
Multiple choice

An account in the name of minor M is opened by his father as ‘M u/g of F’. Which of the following statements in this regard is not correct?

  1. During minority, account will be operated by guardian.

  2. On attaining majority, the account will be operated jointly by the guardian and the account holder, who has become major.

  3. If death of guardian during minority takes place, next guardian will operate the account.

  4. Guardian can make nomination in this account.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / legal guardian, fresh operating instructions and specimen signature of erstwhile minor should be obtained and kept on record for all operational purposes. Thus, option 2 is the correct answer. 

Multiple choice

Lien is the right to ____ the _____ until repayment of the loan as per provisions of _____ of Indian Contract Act.

  1. retain the possession of, goods, securities and bank deposits, Sec 170

  2. retain the possession of, goods and securities, Sec 170

  3. sell, goods and securities, Sec 171

  4. retain the possession of, goods and immovable properties, Sec 170
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In case of a particular lien (Section 170 of Indian Contract Act), the creditor gets the right to retain possession only of goods or securities for which the dues have arisen and not for other dues. For example, a watch-repairer can withhold the delivery of watch until his charges of repairing the watch are paid to him.

Multiple choice

Adverse possession may lead to loss of:

  1. Possession

  2. Ownership

  3. Power

  4. Liberty
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Adverse possession is a legal doctrine that allows a person who possesses someone else's land for a statutory period to eventually acquire legal ownership of that land.

Multiple choice

Assertion (A): Ownership subject to condition subsequent is vested ownership. Reason (R): Possession and ownership do not differ in their modes of acquisition.

  1. Both (A) and (R) are true and (R) is the correct explanation of (A).

  2. Both (A) and (R) are true, but (R) is not the correct explanation of A.

  3. (A) is true, but (R) is false.

  4. (A) is false, but (R) is true.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 1. Condition subsequent is where the interest will take effect on the happening of condition subsequent. The transferee become the owner but if the condition subsequent happens his ownership ceases. Thus, the ownership subject to a condition subsequent is not contingent but vested.

  1. Ownership can be acquired by two modes i.e. original and derivative mode. Possession may be mediate or immediate. A is true and R is false. R cannot be the explanation of A.
  2. Possession and ownership differ in their modes of acquisition. Ownership is a right which comprises of powers, claims and privileges etc. Thus, R is false.
  3. Ownership is vested when the owner’s title is already perfect so he owns it absolutely. It is contingent when the title is imperfect but is capable of being perfect on the fulfillment of some condition. Thus, ownership subject to condition subsequent is vested ownership. So, A is true.
Multiple choice

Attachment of the property of the person absconding

  1. Can only be issued after publication of the proclamation under section 82 of Cr P C

  2. Can be issued before publication of the proclamation under section 82 of Cr P C

  3. Can issued simultaneously with the issue of the proclamation under section 82 of Cr P C

  4. All the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Attachment of the property of the person absconding can be issued simultaneously with the issue of the proclamation under section 82 of Cr P C.

Multiple choice

What must happen before a facility license can be transferred from one location to another?

  1. old location must pass inspection

  2. new location must pass inspection

  3. both locations must pass inspection

  4. just pay the transfer fee
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Facility licenses are location-specific. When moving to a new location, the new facility must meet all health and safety standards, requiring an inspection before the license can be transferred.

Multiple choice commercial applications financial accounting and reporting balance sheet, classification of assets and liabilities accounting records of not-for-profit organisations special issues associated with accounts of non-trading concerns accounting procedure for not-for-profit organisations prepration of income and expenditure account

In case of a non profit organization rent of building is due but not yet received by it is considered as a/an ______________.

  1. Asset

  2. Liability

  3. Income

  4. Expenditure
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When any kind of income is due and has to be received by company in future it is known as accrued income and this type of income is an asset for firm.

Rent for building is due and has to be received by company, so it is an accrued income. Thus, rent to be received is an asset.