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

Mark the incorrect option.

  1. Like criminal breach of trust and misappropriation, there is wrongful gain or loss in cheating.

  2. In both theft and criminal misappropriation, movable property is involved. In cheating, any property is involved.

  3. In cheating, property is taken out of the possession of another person.

  4. In cheating, dishonest intention starts with the very inception of transaction and in breach of trust when the person receives property legally, but retains or converts it unlawfully.

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

In cheating, property is not taken out of the possession of another person. In the offence of cheating, the property is delivered to the person who induces the person delivering the property.

Multiple choice

Mark the incorrect option.

  1. Mere possession of stolen property is not an offence. It must be received and retained dishonestly and with the knowledge that it is stolen property.

  2. The person who receives or retains stolen property is punished in the same manner as a person who commits theft.

  3. There can be no offence under Section 411 unless a thing stolen falls under Section 410.

  4. “Dishonest retention” of property is the same as “dishonest reception” of it.

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

“Dishonest retention” of property is different from “dishonest reception”. Under “dishonest retention”, dishonesty supervenes after the act of possession, while in “dishonest reception”, dishonesty is contemporaneous with the act of acquisition of property.

Multiple choice

What do you mean by “Trust Deed” in context of debenture?

  1. A legal document signed while debentures are bought.

  2. A legal document to appoint trustees to protect the interest of debenture holders before they are offered for public subscription.

  3. A legal document when debentures are transferred.

  4. A legal document made when debentures are sold.

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

Debenture Trust dead. It is a formal legal document/contract that outlines the terms of the debenture issue between issuer and holders. States concerns to maturity date, interest rate, interest payment , protective provisions and any other terms and conditions between issuer and holders.

Multiple choice

Possession is called:

  1. 8 points in Law

  2. 10 points in Law

  3. 9 points in Law

  4. 7 points in Law
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This question refers to the '9 points in Law' or 'Nine Points of Law' regarding possession - a traditional classification system in jurisprudence that breaks down the concept of possession into nine component elements including corpus possessionis (physical control) and animus possidendi (intent to possess). This analytical framework helps courts determine whether true possession exists in legal disputes. The other options (7, 8, or 10 points) are not recognized in standard legal classifications.

Multiple choice

'a' 'b' and 'c' are joint owners of some property 'a' removes the property.

  1. 'a' is not guilty of theft as property belongs to him.

  2. 'a' is guilty of theft as he is only a joint owner.

  3. 'a' is guilty of criminal misappropriation.

  4. 'a' is guilty of breach of trust.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Under Section 378 of the Indian Penal Code, theft requires dishonest taking of movable property from someone who is NOT its owner. A joint owner cannot commit theft of jointly-owned property because as a co-owner, they have a legal right to possess the property, even if they exclude other joint owners. The other offenses (criminal misappropriation, breach of trust) require different elements not satisfied here.

Multiple choice

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

Ownership subject to a condition subsequent (where ownership continues until a specified condition occurs) creates VESTED ownership - the owner gets present title even though enjoyment may be limited by the condition. However, the Reason statement is FALSE because possession and ownership DO differ in their mode of acquisition - possession is factual/control-based, ownership is legal/title-based. Therefore, (A) is true but (R) is false.

Multiple choice

The lapsing of property to the government in default of heirs on the death of the intestate is provided for by Section 29 of the Hindu Succession Act. This is known as

  1. escheat

  2. estoppel

  3. deemed partition

  4. Any of the above

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

If there is no person left to succeed his or her property, such property shall devolve on the government and the government shall take the property subject to all obligations and duties under Section 29 of the Hindu Succession Act. This is known as escheat.

Multiple choice

Consider the following statements: I. Equitable ownership always pre-supposes the existence of a legal ownership. II. When property is given by A to B for the benefit of C, B becomes the legal owner and C the equitable owner. Ill. In many cases, equity recognises ownership whereas law does not recognize ownership owing to some flaw or defect. IV. Contingent ownership is spes successions

  1. I, II and Ill are correct

  2. II and III are correct

  3. I and II are correct

  4. III and IV are correct
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Statement I is correct - equitable ownership (beneficial interest) exists alongside legal ownership, like in a trust. Statement II is correct - in a trust A→B for C's benefit, B holds legal title, C has equitable interest. Statement III is correct - equity may recognize ownership when law doesn't due to technical defects. Statement IV is correct - contingent ownership (succession upon uncertain event) is literally 'hope of succession' (spes successionis).

Multiple choice

Res nullius belongs to him who

  1. makes it

  2. discovers it

  3. purchases it

  4. first obtains possession of it
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Res nullius means that which belongs to no one. Res nullius belongs to him, who first obtains the possession.

Multiple choice

“Possession is nine-tenths of law.” It implies

  1. possession has become a pure technicality of the law

  2. possession has become a variable concept of the law

  3. ownership is easier to maintain if one has possession of something

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

Possession is nine-tenths of law is an expression meaning that ownership is easier to maintain if one has possession of something or difficult to enforce if one does not.

Multiple choice

Mediate possession is one which a person can

  1. acquire through an agent or a servant

  2. acquire unlawfully

  3. acquire directly by himself

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

Possession over a thing may be mediate or immediate. A thing possessed by a person directly or personally is said to be in immediate posses­sion while a thing possessed by a person through another is said to be in mediate possession.

Multiple choice

What is the most essential criterion of possession?

  1. Corpus or physical control

  2. A legal instrument

  3. Intention to hold

  4. Beneficial interest
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The intention to exclude others from the control of property is an essential element of factual possession. The intention to possess the property exclusively implies the intention to exclude all others including the true owner, whether known or unknown, to the adverse possessor.