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

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47.

A, aged thirty two years, executes a gift deed to transfer a plot of land to his daughter B, who is nine years old at that time. After ten years, B transfers the plot of land to her cousin C, aged seventeen years, for a discounted price of Rupees Twenty thousand only. Does C have valid title to the property ?


Principle :

In deeds relating to transfer of property, a minor (any person below the age of 18) can be transferee in case where no a obligation is imposed on such transferee of action or omission. No person can be a transferor of property if that person is not competent to contract.

A: C has valid title to the property because both the first and second transfers were valid transfers, as the transferor in both cases was competent to contract.
B: C has valid title to the property because in deeds relating to transfer of property, the transferee can be a minor.
C: C does not have valid title to the property because B was not competent to contract in the second transaction.
D: Whether C has valid title is to be ascertained by the court on the basis of whether the discounted price is considered to be adequate consideration.
E: C does not have valid title to the property because a minor can be a transferee only when there is no obligation on the minor to pay consideration for the transfer.

The answer is: E

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Explanation

The correct option is E: C does not have valid title to the property because a minor can be a transferee only when there is no obligation on the minor to pay consideration for the transfer.

Explanation:

According to the principle, a minor can be a transferee of property only when there is no obligation imposed on the minor to perform any action or omission. In other words, the transfer must be a gift or a gratuitous transfer. In this case, the first transfer from A to B was a valid gift deed, as A was competent to contract and B was a minor who did not have to pay any consideration for the transfer. However, the second transfer from B to C was not a valid transfer, as B was not competent to contract and C had to pay a discounted price of Rupees Twenty thousand for the transfer. Therefore, C did not acquire a valid title to the property.

The options A, B and D are incorrect because they ignore the fact that B was not competent to contract and C had to pay consideration for the transfer.