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Consider the following statements about leases and licences under the Transfer of Property Act, 1882 and the Indian Easements Act, 1882. 1. A lessee can generally assign the leasehold interest,…

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Consider the following statements about leases and licences under the Transfer of Property Act, 1882 and the Indian Easements Act, 1882.
1. A lessee can generally assign the leasehold interest, subject to applicable restrictions, while a licence is generally non-transferable.
2. A bare licence by itself gives the licensee a right to sue a trespasser in the licensee’s own name.
3. A lease transfers a right to enjoy immovable property, while a licence creates no interest in the property.
4. A fixed-term lease is generally protected from termination at will before the term ends, while a licence is generally revocable, subject to statutory exceptions.
Which statements are correct?

  1. 2, 3 and 4

  2. Only 4

  3. 1 and 2

  4. 1, 3 and 4

Answer and explanation

Correct answer: D - 1, 3 and 4

Sections 105 and 108(j) of the Transfer of Property Act, 1882 distinguish a leasehold interest and the lessee’s default power to transfer it. Section 111 permits earlier determination on specified grounds. A bare licence confers permission without an interest in property under section 52 of the Indian Easements Act, 1882. Because a bare licence gives no interest in the property, the licensee cannot sue a trespasser in his own name, so statement 2 is false and statements 1, 3 and 4 are correct.

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