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Under section 53(1) of the Transfer of Property Act, 1882, what is the effect of an immovable-property…

Section 53(1) makes the transfer voidable at the option of a creditor who is defeated or delayed. It protects a transferee who takes in good faith and for consideration.

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Under section 53(1) of the Transfer of Property Act, 1882, what is the effect of an immovable-property transfer intended to defeat or delay the transferor’s creditors, if the transferee did not take in good faith and for consideration?

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Answer and explanation

Correct answer C

Section 53(1) makes the transfer voidable at the option of a creditor who is defeated or delayed. It protects a transferee who takes in good faith and for consideration.

Option feedback

Option A

Section 53(1) gives affected creditors a right to challenge the transfer.

Option B

The statute makes the transfer voidable at an affected creditor’s option.

Option C

A creditor defeated or delayed by the transfer may exercise the statutory option to avoid it.

Option D

Section 53(1) confers the option on a creditor who is defeated or delayed.

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