A, a guardian, buys up for himself incumbrances on his ward B's estate at an undervalue. Under the…
Illustration (h) to section 88 states that the guardian holds the incumbrances for B "and can only charge him with what he has actually paid". A guardian is in a fiduciary…
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A, a guardian, buys up for himself incumbrances on his ward B's estate at an undervalue. Under the Indian Trusts Act, 1882, what may A charge B for them?
Answer and explanation
Correct answer A
Illustration (h) to section 88 states that the guardian holds the incumbrances for B "and can only charge him with what he has actually paid". A guardian is in a fiduciary position, and section 88 makes him hold for the ward any advantage gained through it, here the discount. The purchase is not void; A is simply limited to recovering his actual outlay.