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Principle: Where a Person Fraudulently Or Erroneously Represents that He is Authorised to Transfer Certain Immovable Property and Professes to Transfer Such Property for Consideration - Legal Reasoning

MCQ

The question consists of legal propositions/ principles (hereinafter referred to as 'principle') and facts. These principles have to be applied to the given facts to arrive at the most reasonable conclusion.

Principle: Where a person fraudulently or erroneously represents that he is authorised to transfer certain immovable property and professes to transfer such property for consideration, such transfer shall, at the option of the transferee, operate on any interest which the transferor may acquire in such property at any time during which the; contract of transfer subsists.

Facts: 'A', a Hindu who has separated from his father 'B' sells to 'C' three fields, X, Y and Z representing that 'A' is authorised to transfer the same. Of these fields Z does not belong to 'A', it having been retained by 'B' on the partition, but on B's dying 'A' as successor obtains Z and at that time 'C' had not cancelled the contract of sale.

Options

  • 'A' can sell Z to a third party

  • 'A' is not required to deliver Z to 'C'

  • 'A' is required to deliver Z to 'C'

  • None of the above statements

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Solution

'A' is required to deliver Z to 'C'

Explanation:

Section 43 of the Transfer of Property Act, deals with this situation, which is, transfer by unauthorised person who subsequently acquires interest in property transferred. 
In the given problem, A is not authorized to transfer  Z as it does not belong to him. But after B’s death, A is the immediate successor and subsequently obtains Z, so he is required to deliver Z to C and he cannot cancel the contract. 

Concept: Criminal Law
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