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Under the general rule in section 107 of the Transfer of Property Act, 1882, which lease can be made by…

Section 107 permits oral agreement with delivery of possession for a lease outside the three classes requiring registration. Those classes are leases from year to year,…

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Under the general rule in section 107 of the Transfer of Property Act, 1882, which lease can be made by oral agreement accompanied by delivery of possession?

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Answer and explanation

Correct answer C

Section 107 permits oral agreement with delivery of possession for a lease outside the three classes requiring registration. Those classes are leases from year to year, leases exceeding one year and leases reserving yearly rent.

Option feedback

Option A

The term exceeds one year, so a registered instrument is required.

Option B

A lease from year to year requires a registered instrument even if rent is paid monthly.

Option C

The six-month lease is neither from year to year nor for over a year and does not reserve yearly rent.

Option D

Reservation of yearly rent independently requires a registered instrument.

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