A transfers certain property to B in trust to sell it and to pay out of the proceeds A's debts. B…
Illustration (b) to section 10 holds that once B accepts the trust and sells, "so far as B is concerned" a trust of the proceeds is created for A's creditors. Acceptance…
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A transfers certain property to B in trust to sell it and to pay out of the proceeds A's debts. B accepts the trust and sells the property. So far as B is concerned, what follows under the Indian Trusts Act, 1882?
Answer and explanation
Correct answer A
Illustration (b) to section 10 holds that once B accepts the trust and sells, "so far as B is concerned" a trust of the proceeds is created for A's creditors. Acceptance under section 10 may be shown by the trustee's own acts, and the creditors need not do anything. B is bound to apply the proceeds as directed, but he does not become personally answerable for A's debts.