What is the effect of a contract for the sale of immovable property by itself under section 54 of the…
Section 54 distinguishes a completed sale, which transfers ownership, from a contract for sale, which provides for a future sale on settled terms. A contract for sale does…
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What is the effect of a contract for the sale of immovable property by itself under section 54 of the Transfer of Property Act, 1882?
Answer and explanation
Correct answer D
Section 54 distinguishes a completed sale, which transfers ownership, from a contract for sale, which provides for a future sale on settled terms. A contract for sale does not by itself create an interest or a charge in the property.
Option feedback
Option A
Section 54 expressly says a contract for sale does not itself create an interest in the property.
Option B
Section 54 expressly says a contract for sale does not itself create a charge.
Option C
A sale transfers ownership. A contract for sale on its own does not do so.
Option D
The contract provides that the sale will take place on the terms settled between the parties.
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