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Which of these, on its own, does NOT establish notice under section 3 of the Transfer of Property Act, 1882? Assume the agent acquired the knowledge while acting for the principal in the relevant…

Question and options

Which of these, on its own, does NOT establish notice under section 3 of the Transfer of Property Act, 1882? Assume the agent acquired the knowledge while acting for the principal in the relevant business.

  1. Actual knowledge of the material fact

  2. Wilfully avoiding a required inquiry that would have revealed the fact

  3. The mere occurrence of a transaction involving the property

  4. A relevant agent’s knowledge of the material fact, with no fraudulent concealment

Answer and explanation

Correct answer: C - The mere occurrence of a transaction involving the property

Section 3 recognises actual knowledge and can deem notice where wilful abstention from proper inquiry or gross negligence prevented knowledge. Explanation III can attribute relevant notice through an agent, subject to the statutory fraud proviso. The mere occurrence of a transaction does not itself satisfy any of these routes.

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