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Under Section 100 of the Transfer of Property Act, 1882, a charge can be created by—

Under Section 100 of the Transfer of Property Act, 1882, immovable property can be made security for payment by an act of the parties or by operation of law. If the…

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Under Section 100 of the Transfer of Property Act, 1882, a charge can be created by—

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Answer and explanation

Correct answer C

Under Section 100 of the Transfer of Property Act, 1882, immovable property can be made security for payment by an act of the parties or by operation of law. If the transaction does not amount to a mortgage, the person entitled to payment has a charge on the property.

Option feedback

Option A

Incorrect. A charge is not restricted to creation by act of parties; Section 100 expressly includes charges created by operation of law.

Option B

Incorrect. A charge can also be created by agreement/act of the parties under Section 100.

Option C

Correct. Section 100 of the Transfer of Property Act, 1882 expressly states that where immoveable property of one person is by act of parties or operation of law made security for the payment of money to another, and the transaction does not amount to a mortgage, the latter person is said to have a charge on the property.

Option D

Incorrect. Section 100 expressly recognizes both act of parties and operation of law as modes of creating a charge.

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