A has agreed to take 50 shares in an intended joint-stock company and to pay 100 rupees per share,…
The second Illustration to section 170 holds that "The estate of A must make good the payments which were necessary to complete A's title". The sums were due from A to…
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A has agreed to take 50 shares in an intended joint-stock company and to pay 100 rupees per share, which must be paid before his title to the shares is complete. He bequeaths the shares to B and dies. Who must make these payments?
Answer and explanation
Correct answer C
The second Illustration to section 170 holds that "The estate of A must make good the payments which were necessary to complete A's title". The sums were due from A to complete his title, so they fall on the estate as between it and the legatee. This also follows the rule in section 168 on completing the testator's title.