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Subject to section 127 of the Transfer of Property Act, 1882, to what extent is a donee who receives…

Section 128 applies when the gift comprises the donor's whole property. Subject to section 127, the donee is personally liable for debts due and liabilities existing at the…

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Subject to section 127 of the Transfer of Property Act, 1882, to what extent is a donee who receives the donor's whole property personally liable for the donor's existing debts and liabilities?

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Answer and explanation

Correct answer A

Section 128 applies when the gift comprises the donor's whole property. Subject to section 127, the donee is personally liable for debts due and liabilities existing at the date of the gift, to the extent of the property comprised in it.

Option feedback

Option A

Section 128 limits the universal donee's personal liability to the extent of the property comprised in the gift.

Option B

Section 128 expressly imposes limited personal liability, subject to section 127.

Option C

The statutory limit is the property comprised in the gift. The rule does not restrict liability to previously encumbered items.

Option D

Section 128 caps liability by the property comprised in the gift, even if existing liabilities exceed it.

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