Which doctrine underlies section 41 of the Transfer of Property Act, 1882, which protects a purchaser…
Section 41 protects a transferee for consideration who takes reasonable care and acts in good faith when the interested persons have expressly or impliedly consented to the…
Choose your answer
Which doctrine underlies section 41 of the Transfer of Property Act, 1882, which protects a purchaser who pays value and acts in good faith after reasonable inquiry into an ostensible owner’s authority?
Answer and explanation
Correct answer B
Section 41 protects a transferee for consideration who takes reasonable care and acts in good faith when the interested persons have expressly or impliedly consented to the transferor appearing to be the owner. The rule is an application of estoppel.
Option feedback
Option A
The question turns on a consented appearance of ownership and protection of the qualifying purchaser, rather than mere abandonment of a right.
Option B
The interested person’s consent to apparent ownership is the basis for estoppel against an objection that the transferor lacked authority, provided the statutory safeguards are met.
Option C
Res judicata concerns the effect of prior adjudication. Section 41 does not require a prior judgment.
Option D
Res sub judice concerns concurrent litigation. Section 41 concerns the apparent owner’s transfer.
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