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Which doctrine underlies section 41 of the Transfer of Property Act, 1882, on a transfer for…

Section 41 applies where the interested persons expressly or impliedly consented to the apparent ownership and the transfer was for consideration. The transferee must take…

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Which doctrine underlies section 41 of the Transfer of Property Act, 1882, on a transfer for consideration by an ostensible owner?

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Correct answer B

Section 41 applies where the interested persons expressly or impliedly consented to the apparent ownership and the transfer was for consideration. The transferee must take reasonable care to ascertain the transferor’s authority and act in good faith. The protection against a challenge based on the transferor’s lack of authority is an application of estoppel.

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Option A

Waiver concerns giving up a right. Section 41 addresses reliance on an appearance of ownership to which interested persons consented.

Option B

Estoppel underlies the protection of a transferee for consideration who makes a reasonable inquiry into the transferor’s authority and acts in good faith.

Option C

Res judicata concerns a matter already adjudicated. A prior judgment is unnecessary under section 41.

Option D

Res sub judice concerns parallel pending proceedings. Section 41 concerns a transfer by an apparent owner.

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