Site navigation

Which of the following constitutes 'sale' under Section 54 of the Transfer of Property Act, 1882?

Section 54 of the Transfer of Property Act, 1882 requires a transfer of ownership in exchange for a price. The price may be paid, promised or partly paid and partly…

Choose your answer

Which of the following constitutes 'sale' under Section 54 of the Transfer of Property Act, 1882?

Select one answer
Answer and explanation

Correct answer B

Section 54 of the Transfer of Property Act, 1882 requires a transfer of ownership in exchange for a price. The price may be paid, promised or partly paid and partly promised. A contract for a future sale does not itself create an interest in or charge on the property. A voluntary transfer of existing property without consideration that the donee accepts is a gift under section 122.

Option feedback

Option A

Incorrect. The transfer is voluntary and without a price. A gift under section 122 also requires acceptance by or on behalf of the donee.

Option B

Correct. Ownership is transferred in exchange for a price, as required by section 54.

Option C

Incorrect. A promise of future transfer in exchange for a promised price is a contract for sale. Ownership has yet to pass.

Option D

Incorrect. Paying the price alone does not turn a promise of future transfer into a completed transfer of ownership.

Practice for these exams

Related exam syllabi

Related questions in this topic