All India Bar Examination (AIBE) 3-III Previous Year Question Papers with Answers

The most accurate statement regarding the parties to a deed arising out of the transfer of property is A : Both parties to such a deed need to be competent to contract.

This is because, according to Section 7 of the Transfer of Property Act, 1882, every person competent to contract and entitled to transferable property, or authorized to dispose of transferable property not his own, is competent to transfer such property either wholly or in part, and either absolutely or conditionally. Therefore, both the transferor and the transferee must have the capacity to contract as per the Indian Contract Act, 1872, which means that they must be of sound mind, not disqualified by any law, and not a minor.

The other statements are not accurate regarding the parties to a deed arising out of the transfer of property. They are:

- B: A minor can be a party to such a deed. A minor is not competent to contract, but he can be a transferee or a beneficiary under a deed of transfer. However, he cannot be a transferor or an executant of a deed, as he cannot bind himself by any contract.
- C: Unlike a deed arising out of contract, a deed arising out of the transfer of property does not require two parties. This is false, as a deed arising out of the transfer of property is also based on a contract between the parties. A contract requires at least two parties who agree upon the same thing in the same sense. Therefore, a deed arising out of the transfer of property also requires two parties who consent to the terms and conditions of the transfer.
- D: The person on whom any obligation is imposed under a sub - deed has to be competent to contract. This is not necessarily true, as an obligation may be imposed on a person who is not competent to contract, such as a minor or a person of unsound mind. However, such an obligation cannot be enforced against him unless he ratifies it after attaining majority or regaining sanity.
- E: A person under a disability cannot be a party to such a deed. This is also not true, as a person under a disability, such as an insolvent or an alien enemy, can be a party to such a deed, but his rights and liabilities may be affected by the law governing his disability. For example, an insolvent can transfer his property subject to the provisions of the Insolvency Act, and an alien enemy can transfer his property subject to the permission of the Central Government.