A is a trustee of certain land for X, Y and Z. The instrument of trust authorises him to sell the land…
Section 11 binds the trustee to the author's directions "except as modified by the consent of all the beneficiaries being competent to contract". In illustration (b) to…
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A is a trustee of certain land for X, Y and Z. The instrument of trust authorises him to sell the land to B for a specified sum. X, Y and Z, being competent to contract, consent that A may sell it to C for a lesser sum. Under the Indian Trusts Act, 1882, what is the position?
Answer and explanation
Correct answer B
Section 11 binds the trustee to the author's directions "except as modified by the consent of all the beneficiaries being competent to contract". In illustration (b) to section 11 all three beneficiaries are competent and agree, so A may sell to C for the lesser sum. No leave of the Court is needed where every beneficiary is competent and consents.