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Under section 106 of the Transfer of Property Act, 1882, a shop lease is deemed to run from month to…

Section 106(1) prescribes fifteen days’ notice for a lease deemed month to month under its default rule. Subsection (2) starts the period on receipt of the notice.

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Under section 106 of the Transfer of Property Act, 1882, a shop lease is deemed to run from month to month. No contract, local law or usage provides otherwise. What notice period does subsection (1) prescribe to terminate the lease?

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Answer and explanation

Correct answer D

Section 106(1) prescribes fifteen days’ notice for a lease deemed month to month under its default rule. Subsection (2) starts the period on receipt of the notice.

Option feedback

Option A

A deemed month-to-month tenancy does not require one full month of notice under the statutory default.

Option B

Section 106(1) prescribes fifteen days in this case.

Option C

Six months is the separate default for agricultural or manufacturing leases to which section 106 applies.

Option D

Section 106(1) prescribes fifteen days. Under subsection (2), the period starts on receipt of the notice.

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