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What is the usual legal term for the transfer of an actionable claim under section 130 of the Transfer…

Section 130 provides for the transfer of an actionable claim by a written instrument signed by the transferor or a duly authorised agent. The ordinary term for that transfer…

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What is the usual legal term for the transfer of an actionable claim under section 130 of the Transfer of Property Act, 1882?

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Answer and explanation

Correct answer A

Section 130 provides for the transfer of an actionable claim by a written instrument signed by the transferor or a duly authorised agent.

The ordinary term for that transfer is assignment.

Option feedback

Option A

Assignment is the usual term for transfer of a claim to another person. Section 130 provides for a signed written instrument.

Option B

Novation substitutes a new contract for an existing one under section 62 of the Indian Contract Act, 1872.

Option C

Subrogation is the acquisition of another person's legal rights by operation of a rule such as section 92 on redemption of a mortgage.

Option D

A release discharges a claim rather than transferring it to a new holder.

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