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The farm of Sultanpur is the property of C and is worth Rs. 800. A, by an instrument of gift, professes…

The first illustration to section 35 states that C, having elected to keep the farm, "forfeits the gift of Rs. 1,000". An owner who dissents must "relinquish the benefit so…

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The farm of Sultanpur is the property of C and is worth Rs. 800. A, by an instrument of gift, professes to transfer it to B, giving by the same instrument Rs. 1,000 to C. A is alive and C elects to retain the farm. What follows?

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Correct answer D

The first illustration to section 35 states that C, having elected to keep the farm, "forfeits the gift of Rs. 1,000". An owner who dissents must "relinquish the benefit so conferred", and that benefit reverts to the transferor. B is compensated out of the relinquished benefit only in the cases the section names, such as a gratuitous transfer where the transferor dies before the election; A is alive here, so no Rs. 800 goes to B.

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