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Under the first paragraph of section 11 of the Transfer of Property Act, 1882, what kind of interest…

The first paragraph of section 11 applies where the transfer creates an absolute interest and directs how the transferee must apply or enjoy it. The transferee may generally…

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Under the first paragraph of section 11 of the Transfer of Property Act, 1882, what kind of interest must the transfer create for the rule on repugnant directions about enjoyment to apply?

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Answer and explanation

Correct answer B

The first paragraph of section 11 applies where the transfer creates an absolute interest and directs how the transferee must apply or enjoy it.

The transferee may generally receive and dispose of that interest free of the direction.

The second paragraph preserves any enforceable right or remedy concerning a direction that secures beneficial enjoyment of another piece of immovable property.

Option feedback

Option A

A limited interest does not meet the requirement of an interest created absolutely.

Option B

An interest created absolutely is the statutory trigger where the transfer also directs how the interest is to be applied or enjoyed.

Option C

A contingent interest alone does not establish that the transfer created an interest absolutely.

Option D

A future expectancy alone does not establish that an interest was created absolutely.

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