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Which statement distinguishes a court decree execution sale from a voluntary act-of-parties transfer under section 5 of the Transfer of Property Act, 1882?

Question and options

Which statement distinguishes a court decree execution sale from a voluntary act-of-parties transfer under section 5 of the Transfer of Property Act, 1882?

  1. A court execution sale is necessarily a voluntary act-of-parties transfer

  2. A court execution sale is outside section 5’s act-of-parties definition

  3. A voluntary sale by an owner falls outside section 5 if held by public auction

  4. A gift falls outside section 5 because no consideration passes

Answer and explanation

Correct answer: B - A court execution sale is outside section 5’s act-of-parties definition

Section 5 covers transfer by act of parties: a living person conveying property to one or more living persons. A sale in execution of a court decree is a transfer by operation of law, and under section 2(d) the Act does not affect it except as provided by section 57 and Chapter IV. A voluntary sale by an owner stays a transfer by act of parties even when held by public auction, and a gift is within section 5 because the definition does not require consideration.

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