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Under section 3 of the Transfer of Property Act, 1882, which is actual knowledge rather than a basis…

Section 3 distinguishes actual knowledge from knowledge imputed because inquiry was wilfully avoided or grossly neglected. It also provides deemed-notice rules for…

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Under section 3 of the Transfer of Property Act, 1882, which is actual knowledge rather than a basis for deemed or constructive notice?

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Answer and explanation

Correct answer D

Section 3 distinguishes actual knowledge from knowledge imputed because inquiry was wilfully avoided or grossly neglected. It also provides deemed-notice rules for qualifying registration and another's possession. Registration and possession operate subject to their statutory conditions. Direct knowledge is actual notice.

Option feedback

Option A

Gross negligence may cause knowledge to be imputed under the notice definition.

Option B

Qualifying registration produces deemed notice under the statutory conditions.

Option C

Explanation II imputes notice of the actual possessor's title to the specified acquirer.

Option D

Direct definite knowledge is actual notice.

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