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A tenant takes possession of a shop under a valid lease for retail use. The lease states no duration,…

Section 106(1) treats this lease as a month-to-month tenancy. The statutory default depends on the purpose of the lease and applies where no contrary contract, local law or…

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A tenant takes possession of a shop under a valid lease for retail use. The lease states no duration, and no contract term, local law or usage supplies a contrary rule. What is the default duration under section 106(1) of the Transfer of Property Act, 1882?

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Answer and explanation

Correct answer D

Section 106(1) treats this lease as a month-to-month tenancy. The statutory default depends on the purpose of the lease and applies where no contrary contract, local law or usage governs.

Option feedback

Option A

The tenant entered under a subsisting lease, rather than remaining after its end.

Option B

An unspecified duration does not displace the statutory monthly default.

Option C

Retail use is neither agricultural nor manufacturing use.

Option D

Section 106(1) applies the monthly default to this retail lease.

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