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In the absence of a contract, local law or usage to the contrary, how does section 106(1) of the…

A manufacturing lease is deemed to run from year to year unless a contract, local law or usage provides otherwise. For purposes outside agriculture and manufacturing, the…

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In the absence of a contract, local law or usage to the contrary, how does section 106(1) of the Transfer of Property Act, 1882 classify a lease of immovable property for manufacturing purposes?

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Correct answer B

A manufacturing lease is deemed to run from year to year unless a contract, local law or usage provides otherwise.

For purposes outside agriculture and manufacturing, the subsection instead sets a month-to-month default.

Option feedback

Option A

Section 106(1) prescribes a periodic lease and fixes no five-year term for this purpose.

Option B

A manufacturing lease is deemed to run from year to year under the stated default rule.

Option C

The month-to-month default is for purposes outside the agricultural and manufacturing category.

Option D

Section 106(1) gives a specific year-to-year classification for manufacturing.

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