A holds shares in X, a prosperous joint stock company, and shares in Y, a company in difficulties on…
The Illustration to section 122 concludes that B "forfeits the shares in (X)". Section 122 says that where a bequest imposes an obligation on the legatee, "he can take…
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A holds shares in X, a prosperous joint stock company, and shares in Y, a company in difficulties on whose shares heavy calls are expected. A bequeaths to B "all his shares in joint stock companies". B accepts the X shares but refuses the Y shares. What is the result?
Answer and explanation
Correct answer B
The Illustration to section 122 concludes that B "forfeits the shares in (X)". Section 122 says that where a bequest imposes an obligation on the legatee, "he can take nothing by it unless he accepts it fully". The gift of all A's shares is a single bequest, so B cannot pick the profitable part and reject the burdensome part.