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Under section 130(1) of the Transfer of Property Act, 1882, how is an actionable claim transferred?

Under section 130(1) of the Transfer of Property Act, 1882, the transfer of an actionable claim with or without consideration requires an instrument in writing signed by the…

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Under section 130(1) of the Transfer of Property Act, 1882, how is an actionable claim transferred?

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Correct answer B

Under section 130(1) of the Transfer of Property Act, 1882, the transfer of an actionable claim with or without consideration requires an instrument in writing signed by the transferor or a duly authorised agent. The transfer is complete upon execution. The section expressly excludes transfers of marine and fire insurance policies and preserves section 38 of the Insurance Act, 1938.

Option feedback

Option A

Incorrect. An oral transfer of an actionable claim is not valid under Section 130(1) of the Transfer of Property Act, 1882.

Option B

Correct. Under Section 130(1) of the Transfer of Property Act, 1882, the transfer of an actionable claim whether with or without consideration shall be effected only by the execution of an instrument in writing signed by the transferor or his duly authorised agent.

Option C

Incorrect. The transferor or a duly authorised agent must sign the instrument under section 130(1).

Option D

Incorrect. Mere delivery without executing a signed written instrument does not effect a transfer of an actionable claim under Section 130(1).

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