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Under the second paragraph of Section 40 of the Transfer of Property Act, 1882, an obligation annexed…

The first paragraph of section 40 of the Transfer of Property Act, 1882 concerns restrictions on the use of one property for the beneficial enjoyment of another. The second…

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Under the second paragraph of Section 40 of the Transfer of Property Act, 1882, an obligation annexed to ownership of immovable property, but not amounting to an interest therein or easement thereon, is otherwise known as:

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Answer and explanation

Correct answer C

The first paragraph of section 40 of the Transfer of Property Act, 1882 concerns restrictions on the use of one property for the beneficial enjoyment of another. The second paragraph concerns obligations arising out of contract and annexed to ownership of immovable property without creating an interest or easement. An obligation within section 40 can be enforced against a gratuitous transferee or a transferee with notice, subject to the terms of the section.

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Option A

The first paragraph addresses restrictions on how land may be used for the benefit of another property.

Option B

The second paragraph addresses an obligation arising out of contract even though it creates no interest in land or easement.

Option C

The statutory language describes an obligation arising out of contract and annexed to ownership.

Option D

The second paragraph describes a contractual obligation annexed to ownership.

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