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A lessee of non-agricultural property stays in possession after the lease ends and the lessor assents.…

Section 116 renews the lease where the lessee remains in possession after determination and the lessor accepts rent or otherwise assents, absent a contrary agreement.…

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A lessee of non-agricultural property stays in possession after the lease ends and the lessor assents. There is no agreement to the contrary. What follows under section 116 of the Transfer of Property Act, 1882?

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Answer and explanation

Correct answer B

Section 116 renews the lease where the lessee remains in possession after determination and the lessor accepts rent or otherwise assents, absent a contrary agreement.

Renewal is yearly or monthly according to the purpose of the lease under section 106.

Option feedback

Option A

Section 116 calls for periodic renewal, which does not automatically repeat the former fixed duration.

Option B

The lessor’s assent and continued possession are the facts needed for statutory holding over in the absence of a contrary agreement.

Option C

Determination of the prior lease precedes the statutory renewal on the stated facts.

Option D

Renewal after determination does not invalidate the original lease.

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