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Under section 106 of the Transfer of Property Act, 1882, what notice period applies to terminate a…

The substituted section 106(1) prescribes six months’ notice for a manufacturing lease under the default rule. The notice period runs from receipt of the notice under…

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Under section 106 of the Transfer of Property Act, 1882, what notice period applies to terminate a valid year-to-year lease of immovable property for manufacturing purposes when no contract, local law or usage provides otherwise?

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Answer and explanation

Correct answer B

The substituted section 106(1) prescribes six months’ notice for a manufacturing lease under the default rule.

The notice period runs from receipt of the notice under section 106(2).

Option feedback

Option A

Thirty days is not the default period for this manufacturing lease.

Option B

Six months is the statutory period on the stated facts.

Option C

Sixty days is shorter than the six months section 106(1) prescribes.

Option D

Three months is shorter than the six-month statutory period.

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