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Lease, Exchange, Gifts & Actionable Claims | Law of Property | MCQ Quiz with Answers | Test Your Legal Knowledge
Lease, Exchange, Gifts & Actionable Claims MCQ Quiz (1–50)
Lease (Sec 105-117)
(1). [AIBE 2021] The transfer of a right to enjoy immovable property for a certain time in consideration of a price paid is called:
- [A]. License
- [B]. Easement
- [C]. Lease
- [D]. Mortgage
(2). The price paid for obtaining a lease is called ____________, and the money rendered periodically is called ____________.
- [A]. Rent, Premium
- [B]. Premium, Rent
- [C]. Consideration, Interest
- [D]. Salami, Mesne Profits
(3). [CLAT-PG 2019] In the absence of a written contract, a lease of immovable property for residential purposes is deemed to be:
- [A]. Year-to-year
- [B]. Month-to-month
- [C]. Perpetual
- [D]. Void
(4). A month-to-month lease is terminable by a notice of:
- [A]. 15 days
- [B]. 30 days
- [C]. 6 months
- [D]. 3 months
(5). [AIBE 2023] Under Section 108(j), can a lessee sub-lease the property?
- [A]. No, sub-leasing is illegal
- [B]. Yes, absolutely or by way of mortgage, unless specifically restricted by the contract
- [C]. Only with court permission
- [D]. Only to family members
(6). Which of the following is NOT a ground for determination of a lease under Section 111?
- [A]. Efflux of time
- [B]. Express surrender
- [C]. Death of the lessee
- [D]. Forfeiture
(7). If a tenant buys the leased property from the landlord, the lease is terminated by the doctrine of:
- [A]. Surrender
- [B]. Merger
- [C]. Forfeiture
- [D]. Frustration
(8). [CLAT-PG 2022] A lease is determined by forfeiture if:
- [A]. The lessee breaks an express condition which provides that on breach the lessor may re-enter
- [B]. The lessee renounces his character as such by setting up a title in a third person
- [C]. The lessee is adjudicated an insolvent (if the lease contains a proviso for re-entry on insolvency)
- [D]. All of the above
(9). Section 114 provides relief against forfeiture for:
- [A]. Sub-letting without permission
- [B]. Non-payment of rent
- [C]. Willful destruction of property
- [D]. Denial of landlord’s title
(10). [AIBE 2018] If a lessor accepts rent from the lessee after a notice to quit has been given, it results in:
- [A]. Waiver of notice to quit (Sec 113)
- [B]. Creation of a permanent tenancy
- [C]. A fine on the lessor
- [D]. Unlawful eviction
(11). The effect of “Holding Over” (Section 116) is that if a lessee remains in possession after the lease expires and the lessor accepts rent, the lease is:
- [A]. Renewed month-to-month or year-to-year depending on the purpose
- [B]. Deemed to be a trespass
- [C]. Converted into absolute ownership
- [D]. Void
(12). The definitive test to distinguish a lease from a license laid down in Associated Hotels v. RN Kapoor is:
- [A]. Registration
- [B]. Exclusive possession
- [C]. Payment of money
- [D]. Duration of stay
(13). [CLAT-PG 2020] Does Chapter V of TPA (Leases) apply automatically to agricultural leases?
- [A]. Yes
- [B]. No, Section 117 exempts them unless state government notifies
- [C]. Yes, but only for registered farmers
- [D]. Only if rent is paid in cash, not crops
(14). A lease for life is:
- [A]. Void
- [B]. Valid and treated as a lease for a certain time
- [C]. Treated as a sale
- [D]. Illegal in India
(15). Under Section 108(B)(e), if the leased property is wholly destroyed by fire/flood (unavoidable), the lease becomes:
- [A]. Void
- [B]. Voidable at the option of the lessee
- [C]. Voidable at the option of the lessor
- [D]. Absolute
Exchange (Sec 118-121)
(16). [AIBE 2022] Under Section 118, “Exchange” occurs when two persons mutually transfer the ownership of:
- [A]. One thing for another, neither being money only
- [B]. Goods for money
- [C]. Services for property
- [D]. Actionable claims for debt
(17). If A transfers a house worth ₹5 Lakhs to B, and B transfers a car worth ₹3 Lakhs plus ₹2 Lakhs in cash to A. Is this an exchange?
- [A]. No, the presence of money makes it a sale
- [B]. Yes, as long as property is exchanged for property, partial money doesn’t alter the nature
- [C]. It is a gift
- [D]. It is void
(18). [CLAT-PG 2021] The mode of transfer for an Exchange is:
- [A]. Through an oral agreement
- [B]. Provided in the manner as transfer of such property by sale
- [C]. Only through court decrees
- [D]. By delivery of possession only
(19). Under Section 119, if a party to an exchange loses the property due to a defect in title, they have the right to:
- [A]. Claim damages only
- [B]. Return of the thing transferred by them
- [C]. Both (a) and (b) at their option
- [D]. Sue the registrar
(20). Under Section 120, each party in an exchange has the rights and is subject to the liabilities of a:
- [A]. Lessor and Lessee
- [B]. Seller (as to what he gives) and Buyer (as to what he takes)
- [C]. Donor and Donee
- [D]. Mortgagor and Mortgagee
Gifts (Sec 122-129)
(21). [AIBE 2019] For a valid gift under Section 122, the transfer must be made:
- [A]. Voluntarily and without consideration
- [B]. Voluntarily and for nominal consideration
- [C]. Under court order
- [D]. With love and affection as legally valid consideration
(22). Acceptance of a gift must occur:
- [A]. Within 12 years
- [B]. During the lifetime of the donor and while he is capable of giving
- [C]. At any time before registration
- [D]. After the death of the donor
(23). [CLAT-PG 2023] If the donee dies before acceptance, the gift is:
- [A]. Valid and passes to donee’s heirs
- [B]. Void
- [C]. Voidable
- [D]. Transferred to the state
(24). A gift of immovable property under Section 123 MUST be effected by:
- [A]. Delivery of possession
- [B]. A registered instrument signed by or on behalf of the donor, and attested by at least two witnesses
- [C]. An oral declaration
- [D]. A notarized affidavit
(25). [AIBE 2020] A gift of purely movable property may be effected by:
- [A]. Registered instrument only
- [B]. Delivery of possession only
- [C]. Either by a registered instrument or by delivery
- [D]. Court decree
(26). A gift comprising both existing and future property is:
- [A]. Valid entirely
- [B]. Void entirely
- [C]. Valid as to existing property, and void as to future property (Sec 124)
- [D]. Voidable
(27). A gift of a thing to two or more donees, of whom one does not accept it, is:
- [A]. Void completely
- [B]. Valid as to the whole for the accepting donee
- [C]. Void as to the interest which he would have taken had he accepted (Sec 125)
- [D]. Suspended
(28). [CLAT-PG 2018] A gift may be suspended or revoked under Section 126 if:
- [A]. The donor simply changes his mind
- [B]. The donor and donee agreed that on the happening of a specified event (not depending on donor’s will) it shall be suspended/revoked
- [C]. The donee becomes insolvent
- [D]. The property appreciates in value
(29). A gift which the parties agree shall be revocable wholly or in part at the mere will of the donor is:
- [A]. Valid
- [B]. Void wholly or in part, as the case may be
- [C]. Valid if registered
- [D]. Converted to a trust
(30). [AIBE 2021] What is an “Onerous Gift” under Section 127?
- [A]. A gift of stolen property
- [B]. A single transfer containing multiple properties, one of which is burdened by an obligation
- [C]. A gift made to minors
- [D]. A gift to charities
(31). Under Section 127, the donee of an onerous gift:
- [A]. Can accept the beneficial property and reject the burdened property
- [B]. Must accept fully or reject fully (takes nothing if he doesn’t accept the burden)
- [C]. Can ask the court to sever the burden
- [D]. Automatically gets the burden cancelled
(32). A “Universal Donee” (Section 128) is a person who receives a gift of:
- [A]. The whole of the donor’s property
- [B]. Property across different countries
- [C]. Only intangible assets
- [D]. Public properties
(33). [CLAT-PG 2019] A Universal Donee is personally liable for all the debts and liabilities of the donor at the time of the gift:
- [A]. Without any limit
- [B]. To the extent of the property comprised in the gift
- [C]. Only for secured debts
- [D]. Not liable at all
(34). Section 129 states that Chapter VII (Gifts) shall not affect any rule of:
- [A]. Hindu Law
- [B]. Christian Law
- [C]. Mohammedan Law
- [D]. Parsi Law
(35). [AIBE 2022] Hiba (Muslim Gift) requires:
- [A]. Registration under Section 123
- [B]. Declaration, Acceptance, and Delivery of Possession, bypassing Sec 123
- [C]. Court approval
- [D]. Minimum 4 witnesses
(36). Death-bed gifts of movable property (Donatio mortis causa) are governed by:
- [A]. Section 122 TPA
- [B]. Section 129 TPA exception and Sec 191 of Indian Succession Act
- [C]. Hindu Succession Act
- [D]. Registration Act
(37). In Gomtibai v Mattulal, it was held that a gift deed without acceptance by the donee is:
- [A]. Valid but voidable
- [B]. Void
- [C]. Valid in equity
- [D]. Protected by part performance
(38). Can a minor be a donee under the TPA?
- [A]. Yes, but the gift must be accepted on his behalf, and if onerous, he can repudiate upon attaining majority
- [B]. No, void ab initio
- [C]. Yes, but only for cash
- [D]. No, minors cannot own property
(39). If an onerous gift is made to a minor, and he accepts it during minority:
- [A]. He is permanently bound by the burden
- [B]. He is not bound, and upon attaining majority, he can retain the gift while rejecting the burden
- [C]. He is not bound, but upon attaining majority, if he retains the property, he becomes bound by the burden (Sec 127)
- [D]. The gift is void
(40). Under Section 126, a gift can also be revoked on grounds that would make a ___________ voidable (e.g., coercion, fraud).
- [A]. Contract
- [B]. Lease
- [C]. Mortgage
- [D]. Will
Actionable Claims (Sec 130-137)
(41). [AIBE 2017] An Actionable Claim (Section 3) is a claim to any:
- [A]. Secured debt
- [B]. Unsecured debt or beneficial interest in movable property not in possession
- [C]. Immovable property in dispute
- [D]. Copyrights and Patents
(42). Which of the following is an Actionable Claim?
- [A]. Claim for arrears of rent
- [B]. Claim for mesne profits
- [C]. A decree of a court
- [D]. Claim for unliquidated damages (tort)
(43). [CLAT-PG 2021] The transfer of an actionable claim (Sec 130) shall be effected only by:
- [A]. Delivery of possession
- [B]. The execution of an instrument in writing signed by the transferor
- [C]. A registered deed
- [D]. An oral agreement
(44). Does the assignment of an actionable claim require registration?
- [A]. Yes, always
- [B]. No, execution in writing is sufficient
- [C]. Yes, if value exceeds ₹100
- [D]. Yes, if requested by the debtor
(45). [AIBE 2023] Under Section 131, the transfer of an actionable claim is binding on the debtor only when:
- [A]. The debtor consents to the transfer
- [B]. Express notice in writing is given to the debtor
- [C]. The assignment is registered
- [D]. The debt matures
(46). If the debtor, in good faith, pays the original creditor before receiving notice of the assignment, the debtor is:
- [A]. Still liable to the assignee
- [B]. Discharged of the debt (Sec 130 Proviso)
- [C]. Guilty of fraud
- [D]. Jointly liable
(47). [CLAT-PG 2022] Section 132 dictates that the assignee of an actionable claim takes it subject to:
- [A]. No liabilities
- [B]. All the liabilities and equities to which the transferor was subject at the date of transfer
- [C]. Only written liabilities
- [D]. Taxes and duties only
(48). Bare Act Illustration: A transfers to C a debt due to him by B, A being then indebted to B. C sues B for the debt due by B to A. B can:
- [A]. Do nothing and must pay C in full
- [B]. Set off the debt due by A to him against C’s claim
- [C]. Sue the state
- [D]. Refuse to recognize C
(49). [AIBE 2019] According to Section 136, who is legally prohibited from buying or trafficking in actionable claims?
- [A]. Judges, legal practitioners, or officers connected with any Court of Justice
- [B]. Doctors and engineers
- [C]. Minors
- [D]. Foreign nationals
(50). Section 137 explicitly exempts which of the following instruments from the rules of transfer of actionable claims?
- [A]. Negotiable instruments (cheques, bills of exchange)
- [B]. Shares in a company
- [C]. Debentures
- [D]. Arrears of rent
