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Assume Section 106(1) of the Transfer of Property Act, 1882 applies to each lease and that no contract,…

Where section 106(1) applies and no contract, local law or usage provides otherwise, agricultural and manufacturing leases are deemed year-to-year with six months’ notice,…

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Assume Section 106(1) of the Transfer of Property Act, 1882 applies to each lease and that no contract, local law or usage provides otherwise. Consider the following statements.

  1. A lease of immovable property for agricultural purposes is deemed to run from year to year.
  2. A lease of immovable property for manufacturing purposes is deemed to run from year to year.
  3. A lease of immovable property for any other purpose is deemed to run from month to month.

Which statements are correct?

Select one answer
Answer and explanation

Correct answer D

Where section 106(1) applies and no contract, local law or usage provides otherwise, agricultural and manufacturing leases are deemed year-to-year with six months’ notice, and other leases are deemed month-to-month with fifteen days’ notice. Section 117 generally exempts agricultural leases from the chapter unless a State Government notification makes the relevant provisions applicable. The question assumes applicability.

Option feedback

Option A

Incorrect. Statement III is also correct under section 106(1).

Option B

Incorrect. Statement II is also correct under section 106(1).

Option C

Incorrect. Statement I is also correct on the stated assumption that section 106(1) applies.

Option D

Correct. All three statements follow from section 106(1) where that provision applies.

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