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In which situation does section 10 of the Transfer of Property Act, 1882 allow a condition that…

Section 10 of the Transfer of Property Act, 1882 generally voids a condition absolutely restraining alienation of the transferee’s interest. It expressly excepts a condition…

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In which situation does section 10 of the Transfer of Property Act, 1882 allow a condition that absolutely restrains the transferee from disposing of the transferred interest?

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Correct answer C

Section 10 of the Transfer of Property Act, 1882 generally voids a condition absolutely restraining alienation of the transferee’s interest.

It expressly excepts a condition in a lease for the benefit of the lessor or persons claiming under the lessor.

Option feedback

Option A

The statutory lease exception requires the restraint to benefit the lessor or persons claiming under the lessor.

Option B

A restraint benefiting the donee is not the stated exception for a lease.

Option C

A lease condition benefiting the lessor meets the express lease exception.

Option D

A reserved right of pre-emption is not the express exception for an absolute restraint. It does not necessarily prohibit alienation.

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