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A leases immovable property to B to manufacture tractor spare parts. No contract, local law or usage…

Section 106(1) treats a manufacturing lease as a year-to-year lease terminable by either party on six months’ notice. Under section 106(2), the period runs from receipt of…

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A leases immovable property to B to manufacture tractor spare parts. No contract, local law or usage provides otherwise. What notice period does section 106(1) of the Transfer of Property Act, 1882 prescribe for terminating the lease?

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Correct answer C

Section 106(1) treats a manufacturing lease as a year-to-year lease terminable by either party on six months’ notice. Under section 106(2), the period runs from receipt of the notice.

Option feedback

Option A

Fifteen days is the default for leases for purposes other than agriculture or manufacturing.

Option B

The statute does not prescribe a thirty-day default for a manufacturing lease.

Option C

Section 106(1) prescribes six months’ notice for a manufacturing lease.

Option D

Year-to-year describes the deemed lease term, while the notice period is six months.

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