Site navigation

Under section 106 of the Transfer of Property Act, 1882, if there is no contract, local law or usage to…

Absent a contrary contract, local law or usage, a manufacturing lease is deemed to run year to year and is terminable on six months’ notice. Section 106(2) measures the…

Choose your answer

Under section 106 of the Transfer of Property Act, 1882, if there is no contract, local law or usage to the contrary, what notice period applies to terminate the deemed year-to-year lease of immovable property for manufacturing?

Select one answer
Answer and explanation

Correct answer C

Absent a contrary contract, local law or usage, a manufacturing lease is deemed to run year to year and is terminable on six months’ notice. Section 106(2) measures the notice period from receipt.

Option feedback

Option A

Fifteen days is the default notice period for leases for purposes other than agriculture or manufacturing.

Option B

Section 106 does not prescribe one month for a manufacturing lease.

Option C

Section 106(1) specifies six months’ notice for this lease. The period runs from receipt of the notice under section 106(2).

Option D

The lease is deemed year to year, but section 106 requires six months’ notice.

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic