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Assertion (A): Where immovable property of one person is by an act of parties made security for payment…

The assertion tracks section 100: immovable property made security for payment of money, without the transaction amounting to a mortgage, constitutes a charge. The reason is…

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Assertion (A): Where immovable property of one person is by an act of parties made security for payment of money to another and the transaction does not amount to Mortgage, the latter person is said to have a charge on the property.
Reason (R): Any contract in respect of immovable property, of itself, creates a charge on such property.

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Correct answer C

The assertion tracks section 100: immovable property made security for payment of money, without the transaction amounting to a mortgage, constitutes a charge. The reason is false. A contract about immovable property does not invariably create a charge; section 54 expressly says a contract for sale does not, of itself, create an interest in or charge on the property.

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