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.

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Property and Trust Law Questions

Multiple choice

Which of the following is/are not stridhan?

  1. Property inherited by a woman whether from a male or a female

  2. Property obtained by a woman by adverse possession

  3. Gifts from relations/strangers

  4. Property acquired by self-exertion

  5. Both (1) and (4)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Property acquired by a woman either from a male or a female is not stridhan. She takes only a limited interest in the property and on her death, the property passes not to her heirs, but to the next heirs of the person from whom she inherited it.

Multiple choice

Gippy contracts with Diljeet to deliver possession of a house under construction within a period of six months; failing which he would pay the monthly rental of Diljeet. The monthly rental payable by Gippy for Diljeet is in the nature of _________.

  1. penalty

  2. liquidated damages

  3. exemplary damages

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

The amount fixed is considered to be a penalty, if it is not based upon a reasonable calculation of actual loss, but is fixed by a way of punishment and as a threat.

Multiple choice

In case of bailment

  1. property in goods passes to the bailee at the time of contract

  2. property in goods passes to the bailee upon the payment of the last installment

  3. property in goods can pass to the bailee at any time after the contract

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

Bailment transfers possession, not ownership. The bailee never gains property rights - only temporary custody for a specific purpose. Options A, B, and C all incorrectly suggest property transfer. Option D correctly rejects all these false statements.

Multiple choice

An unpaid seller loses the right of lien under the following circumstance(s):

  1. Where the seller so conducts himself that he leads third parties to believe that the lien does not exist.

  2. Where seller has waived the right of lien.

  3. Where the buyer or his agent lawfully obtains possession of the goods.

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

An unpaid seller loses lien rights by waiving them, when buyer/agent lawfully obtains possession, or through estoppel (conduct leading third parties to believe lien doesn't exist). All three circumstances independently terminate the right of lien.

Multiple choice

In case of bailment,

  1. property in goods passes to the bailee at the time of contract

  2. property in goods passes to the bailee upon the payment of the last installment

  3. property in goods can pass to the bailee at any time after the contract

  4. property in goods does not pass to the bailee and instead there is transfer of possession of goods takes place from bailor to the bailee for a specific reason
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Bailment involves the transfer of possession, not ownership or property. When goods are bailed, the bailee receives possession for a specific purpose and must return them, but ownership remains with the bailor. Options A, B, and C are incorrect because bailment never involves transfer of property - it is specifically about temporary transfer of possession for a particular reason.

Multiple choice

A fraudulently informs B that A`s estate is free from incumbrance. B thereupon buys the estate. The estate is subject to mortgage. Now

  1. B may avoid the contract

  2. B may insist upon its performance

  3. B may get the mortgage debt redeemed

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When a party fraudulently misrepresents a material fact (like an encumbrance), the defrauded party has multiple remedies: avoiding (rescinding) the contract, insisting on performance with compensation, or having the defect rectified (mortgage redemption). All these remedies are available under contract law for fraud.

Multiple choice

Right of lien is to

  1. retain possession

  2. regain possession

  3. remove possession

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

Right of lien is the right to RETAIN possession of goods or property belonging to another until a debt or charge is paid. It is not about regaining possession (that would be recovery) or removing possession. The key feature is continuing to hold something you already lawfully possess.

Multiple choice

A person is deemed to be in a position to dominate the will of the other when he

  1. holds real authority over the other

  2. holds apparent authority over the other

  3. stands in a fiduciary relation to the other

  4. all of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Undue influence occurs when one party dominates the will of another. This can happen through real authority (boss-employee), apparent authority (perceived power), or fiduciary relationship (trust between parties). All these situations create pressure that may invalidate consent.

Multiple choice

The property in the goods means the

  1. possession of goods

  2. custody of goods

  3. ownership of goods

  4. both (1) and (2)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Property in goods refers to ownership, not mere possession or custody. Possession is physical control, custody is temporary holding, but property (ownership) is the legal title.

Multiple choice

The essence of a right of lien is to

  1. deliver the goods

  2. retain the possession

  3. regain the possession

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

A right of lien allows a person to retain possession of goods belonging to another until a debt or charge is paid. It does not involve delivering goods or regaining possession, but specifically keeping what one already possesses until the obligation is fulfilled.

Multiple choice

The right of ownership of property passes on the insurer after the insured is compensated for the loss of the property insured by him. This implies that it is the principle of

  1. proximate cause

  2. indemnity

  3. mitigation

  4. subrogation

  5. utmost good faith
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

 The principle of subrogation implies that after the insured is compensated for the loss or damage of the property insured by him, the right of ownership of the property passes on to the insurer.

Multiple choice

The essence of right of lien is to

  1. deliver the goods

  2. retain the possession

  3. regain the possession

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

Right of lien is the right to retain possession of goods (not ownership) until specific charges are paid. The lien holder keeps the goods they already possess - they do not deliver, nor do they regain lost possession. It's a possessory right only.

Multiple choice

Right of lien is to

  1. retain possession

  2. regain possession

  3. remove possession

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

Lien is the legal right to retain possession of someone else's property until a debt or obligation is discharged. It is about keeping possession (retaining), not regaining (recovering), removing (relinquishing), or recharging (restoring).