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A lease of premises for manufacturing is governed by section 106 of the Transfer of Property Act, 1882.…

A manufacturing lease subject to the statutory default is deemed year to year and terminable by six months’ notice. Section 106(2) counts from receipt, and subsection (4)…

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A lease of premises for manufacturing is governed by section 106 of the Transfer of Property Act, 1882. No contract, local law or usage provides otherwise. What notice period does the statute prescribe for either party to terminate the deemed year-to-year lease?

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Answer and explanation

Correct answer B

A manufacturing lease subject to the statutory default is deemed year to year and terminable by six months’ notice. Section 106(2) counts from receipt, and subsection (4) requires signed written notice served as prescribed.

Option feedback

Option A

Section 106(1) sets a longer period for this deemed manufacturing lease.

Option B

Section 106(1) specifies six months, and subsection (2) starts the period on receipt.

Option C

Three months is not the prescribed period for this deemed lease.

Option D

Sixty days is not the notice period fixed for this class of lease.

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