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Under section 53(1) of the Transfer of Property Act, 1882, an owner transfers immovable property to…

The transfer is voidable at the option of a creditor it defeats or delays. Section 53(1) preserves the rights of a good-faith transferee for consideration and preserves the…

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Under section 53(1) of the Transfer of Property Act, 1882, an owner transfers immovable property to defeat or delay a creditor. Assume no statutory protection for the transferee applies. Which statement describes the affected creditor’s right?

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Answer and explanation

Correct answer A

The transfer is voidable at the option of a creditor it defeats or delays.

Section 53(1) preserves the rights of a good-faith transferee for consideration and preserves the law of insolvency.

Option feedback

Option A

Section 53(1) makes the transfer voidable at the option of a creditor defeated or delayed.

Option B

The statute gives the affected creditor a right of avoidance.

Option C

A voidable transfer differs from one that is void from the outset.

Option D

The statutory election belongs to a defeated or delayed creditor.

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