A bequeaths to B fifty houses let at monthly rents, in trust to collect the rents and pay them to C.…
Section 47 permits delegation where it "is necessary" or is in the regular course of business, and collecting the rents of fifty houses is such a case. Illustration (c) to…
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A bequeaths to B fifty houses let at monthly rents, in trust to collect the rents and pay them to C. Under the Indian Trusts Act, 1882, may B employ someone else to collect the rents?
Answer and explanation
Correct answer C
Section 47 permits delegation where it "is necessary" or is in the regular course of business, and collecting the rents of fifty houses is such a case. Illustration (c) to section 47 states that "B may employ a proper person to collect these rents." B remains responsible for choosing a proper agent, so he cannot shift the risk of the collector's default onto C.