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A transfers ownership of land to B by a registered sale deed for a price payable one year later. B does…

Section 54 of the Transfer of Property Act, 1882 recognises a sale for a price promised. Dahiben v. Arvindbhai Kalyanji Bhanusali confirms that nonpayment does not…

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A transfers ownership of land to B by a registered sale deed for a price payable one year later. B does not pay the price when it falls due. What is the legal effect?

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Answer and explanation

Correct answer B

Section 54 of the Transfer of Property Act, 1882 recognises a sale for a price promised. Dahiben v. Arvindbhai Kalyanji Bhanusali confirms that nonpayment does not invalidate a sale once title has passed. Section 55(4)(b) gives the seller a charge for unpaid purchase money and interest from delivery of possession in the hands of the buyer, a transferee without consideration, or a transferee with notice of nonpayment.

Option feedback

Option A

Incorrect. A promised price satisfies section 54. Nonpayment does not undo ownership that has already passed.

Option B

Correct. The sale is not void merely because the promised price remains unpaid.

Option C

Incorrect. The seller has civil remedies for the unpaid price, including the statutory charge in applicable circumstances.

Option D

Incorrect. The payment date does not trigger automatic reversion of title.

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