The Indian Trusts Act, 1882 MCQs Set-4

The Indian Trusts Act, 1882 MCQs Set-4

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There are 4 Sets of MCQs available for The Indian Trusts Act, 1882, you are advised to explore all the sets : 

Law Of Trusts MCQs Set -1

Law Of Trusts MCQs Set -2

Law Of Trusts MCQs Set -3

Law Of Trusts MCQs Set -4

 

1. When trustee mixes trust-property with his own:

a. Trust ends

b. Property becomes personal

c. Beneficiary gets charge on entire fund

d. Court takes over

 

2. Beneficiary’s charge extends to:

a. Trust portion only

b. Entire mixed fund

c. Trustee’s property only

d. Court assets

 

3. Section 67 of the Indian Trusts Act, 1882 deals with:

a. Liability of partner-trustee

b. Beneficiary rights

c. Trustee duties

d. Investment

 

4. If a trustee-partner uses trust-property in partnership:

a. All partners are liable

b. No one is liable

c. Only trustee is liable

d. Other partners are liable only with notice

 

5. Partners without notice are:

a. Liable

b. Partially liable

c. Not personally liable

d. Jointly liable

 

6. Partners with notice are:

a. Not liable

b. Individually liable

c. Jointly and severally liable

d. Court liable

 

7. Section 68 of the Indian Trusts Act, 1882 deals with:

a. Trustee liability

b. Liability of beneficiary joining in breach

c. Investment

d. Transfer of interest

 

8. A beneficiary is liable if he:

a. Remains silent

b. Joins in breach of trust

c. Receives income

d. Holds property

 

9. Liability arises if beneficiary:

a. Objects

b. Reports breach

c. Knowingly gains advantage from breach

d. Refuses benefit

 

10. Liability arises if beneficiary:

a. Protects trust

b. Reports breach

c. Conceals breach or fails to act

d. Seeks court help

 

11. Liability arises if beneficiary:

a. Acts honestly

b. Misleads trustee

c. Remains unaware

d. Refuses benefit

 

12. Consequence of such conduct is:

a. Removal of trustee

b. Criminal liability

c. Impounding of beneficiary’s interest

d. Trust termination

 

13. Impounding continues until:

a. Court orders

b. Trustee decides

c. Loss is compensated

d. Property is sold

 

14. Exception applies for:

a. Minor beneficiary

b. Married woman with restricted interest

c. Government property

d. Trustee

 

15. Section 69 of the Indian Trusts Act, 1882 deals with:

a. Beneficiary transfer rights

b. Trustee duties

c. Investment

d. Liability rules

 

16. A transferee of beneficiary gets:

a. Only rights

b. Only liabilities

c. Rights without liabilities

d. Rights and liabilities of beneficiary

 

17. Such rights and liabilities are determined at:

a. Date of trust creation

b. Date of transfer

c. Date of breach

d. Date of suit

 

18. Section 70 of the Indian Trusts Act, 1882 deals with:

a. Discharge of trustee

b. Office how vacated

c. Appointment of trustee

d. Trustee liability

 

19. The office of a trustee is vacated by:

a. Resignation only

b. Court order only

c. Death or discharge

d. Beneficiary request

 

20. Section 71 of the Indian Trusts Act, 1882 deals with:

a. Discharge of trustee

b. Trustee duties

c. Beneficiary rights

d. Investment

 

21. Trustee may be discharged by:

a. Government order

b. Extinction of trust

c. Beneficiary’s will

d. Court decree only

 

22. Trustee is discharged when:

a. He resigns

b. Trust begins

c. Duties are completed

d. Court refuses

 

23. Discharge may occur by:

a. Instrument of trust

b. Beneficiary only

c. Trustee alone

d. Government

 

24. Trustee may be discharged by:

a. Court only

b. Appointment of new trustee

c. Beneficiary request only

d. Registrar

 

25. Discharge requires consent of:

a. Trustee only

b. Court only

c. Beneficiary or all competent beneficiaries

d. Government

 

26. Trustee may be discharged by:

a. Government

b. Court

c. Beneficiary

d. Registrar

 

27. Section 72 of the Indian Trusts Act, 1882 deals with:

a. Petition for discharge

b. Trustee duties

c. Investment

d. Beneficiary rights

 

28. A trustee may apply for discharge by:

a. Suit

b. Petition

c. Appeal

d. Agreement

 

29. Petition is made to:

a. High Court

b. Supreme Court

c. Principal Civil Court of original jurisdiction

d. District Magistrate

 

30. Court may discharge trustee if:

a. Trustee requests

b. Beneficiary agrees

c. Sufficient reason exists

d. Government directs

 

31. Court may order costs to be paid from:

a. Trustee

b. Beneficiary

c. Government

d. Trust-property

 

32. If no sufficient reason exists, discharge is allowed only if:

a. Trustee insists

b. Beneficiary agrees

c. Proper replacement is available

d. Court permits

 

33. Section 73 of the Indian Trusts Act, 1882 deals with:

a. Discharge of trustee

b. Appointment of new trustees

c. Trustee duties

d. Beneficiary rights

 

34. A new trustee may be appointed when existing trustee:

a. Acts properly

b. Performs duties

c. Dies, disclaims, or becomes incapable

d. Is appointed

 

35. Appointment can be made when trustee is absent from India for:

a. 3 months

b. 1 year

c. 6 months

d. 2 years

 

36. Appointment is possible when trustee:

a. Accepts duties

b. Becomes insolvent

c. Performs properly

d. Is active

 

37. A new trustee may be appointed when trustee:

a. Accepts trust

b. Refuses to act

c. Performs duties

d. Is beneficiary

 

38. Appointment may be made by:

a. Beneficiary

b. Court only

c. Person nominated in instrument of trust

d. Government

 

39. If no such person exists, appointment may be made by:

a. Government

b. Author of trust (if alive and competent)

c. Registrar

d. Beneficiary only

 

40. Appointment may also be made by:

a. Any person

b. Surviving or continuing trustees

c. Court clerk

d. Government officer

 

41. Legal representative of last trustee may appoint:

a. With consent of beneficiary

b. Without authority

c. As per discretion

d. New trustee

 

42. Retiring trustees may appoint new trustee:

a. Without consent

b. With court consent

c. With government approval

d. With beneficiary request

 

43. Appointment of new trustee must be:

a. Oral

b. Registered

c. Written under hand

d. Court certified

 

44. Number of trustees may:

a. Decrease only

b. Remain fixed

c. Increase

d. Be decided by court

 

45. Official Trustee may be appointed:

a. Without consent

b. With consent and court order

c. By beneficiary

d. By government

 

46. A person nominated trustee in a will but dying before testator is treated as:

a. Invalid trustee

b. Continuing trustee

c. Dead trustee for this section

d. Beneficiary

 

47. Continuing trustee includes:

a. Only active trustee

b. Retiring or refusing trustee willing to act

c. Beneficiary

d. Court

 

48. Section 74 of the Indian Trusts Act, 1882 deals with:

a. Appointment by Court

b. Vesting of property

c. Survival of trust

d. Trustee duties

 

49. Court appoints new trustee when:

a. Trustee resigns

b. Beneficiary demands

c. Appointment under section 73 is impracticable

d. Government directs

 

50. Application to Court is made by:

a. Trustee

b. Beneficiary

c. Government

d. Registrar

 

51. Application is made by:

a. Suit

b. Appeal

c. Petition

d. Agreement

 

52. Court must consider wishes of:

a. Government

b. Author of trust

c. Registrar

d. Trustee only

 

53. Court also considers wishes of:

a. Beneficiary

b. Court officer

c. Person empowered to appoint trustee

d. Government

 

54. Court considers whether appointment will:

a. Delay trust

b. Affect court

c. Benefit trustee

d. Promote or impede execution of trust

 

55. Where multiple beneficiaries exist, Court considers:

a. Majority

b. Trustee interest

c. Interests of all beneficiaries

d. Government policy

 

56. Section 75 of the Indian Trusts Act, 1882 deals with:

a. Survival of trust

b. Vesting of trust-property in new trustees

c. Trustee duties

d. Beneficiary rights

 

57. On appointment of new trustee, property:

a. Remains with old trustee

b. Transfers to beneficiary

c. Vests in new trustee

d. Goes to court

 

58. Property may vest:

a. Solely or jointly

b. Only solely

c. Only jointly

d. With government

 

59. New trustee has:

a. Limited powers

b. No authority

c. Same powers as original trustee

d. Court-controlled powers

 

60. Section 76 of the Indian Trusts Act, 1882 deals with:

a. Trustee liability

b. Survival of trust

c. Vesting

d. Appointment

 

61. On death of one co-trustee:

a. Trust ends

b. Court takes over

c. Trust survives

d. Property lapses

 

62. Trust-property passes to:

a. Beneficiary

b. Court

c. Government

d. Remaining trustees

 

63. Exception applies when:

a. Court orders

b. Beneficiary agrees

c. Instrument provides otherwise

d. Government directs

 

64. Section 77 of the Indian Trusts Act, 1882 deals with:

a. Revocation of trust

b. Extinguishment of trust

c. Trustee duties

d. Beneficiary rights

 

65. A trust is extinguished when:

a. Trustee resigns

b. Beneficiary requests

c. Purpose is completely fulfilled

d. Court orders

 

66. A trust is extinguished when its purpose:

a. Becomes beneficial

b. Becomes unlawful

c. Becomes profitable

d. Becomes disputed

 

67. A trust is extinguished when:

a. Trustee dies

b. Beneficiary transfers

c. Property increases

d. Fulfilment becomes impossible

 

68. Destruction of trust-property leads to:

a. Continuation

b. Suspension

c. Extinguishment

d. Transfer

 

69. A revocable trust is extinguished when:

a. Trustee resigns

b. Court directs

c. Beneficiary agrees

d. It is expressly revoked

 

70. Section 78 of the Indian Trusts Act, 1882 deals with:

a. Extinguishment

b. Trustee duties

c. Revocation of trust

d. Investment

 

71. A trust created by will may be revoked by:

a. Beneficiary

b. Trustee

c. Court

d. Testator

 

72. Such revocation is at:

a. Court’s discretion

b. Beneficiary’s will

c. Pleasure of testator

d. Government order

 

73. A non-testamentary trust may be revoked by:

a. Trustee

b. Consent of all competent beneficiaries

c. Court only

d. Government

 

74. Revocation is possible when:

a. Trustee agrees

b. Beneficiary demands

c. Power of revocation is reserved

d. Court orders

 

75. Trust for payment of debts may be revoked when:

a. Communicated to creditors

b. Not communicated to creditors

c. Court orders

d. Trustee agrees

 

76. In such case revocation is at pleasure of:

a. Beneficiary

b. Court

c. Trustee

d. Author of trust

 

77. Section 79 of the Indian Trusts Act, 1882 deals with:

a. Revocation limitation

b. Trustee duties

c. Beneficiary rights

d. Investment

 

78. Revocation cannot defeat:

a. Future acts

b. Beneficiary rights

c. Trustee’s duly executed acts

d. Court orders

 

79. Section 80 of the Indian Trusts Act, 1882 deals with:

a. Revocation

b. Obligation in nature of trust

c. Trustee liability

d. Beneficiary rights

 

80. Obligation in nature of trust is created:

a. Always

b. In specified cases

c. By court only

d. By beneficiary

 

81. Section 83 of the Indian Trusts Act, 1882 deals with:

a. Illegal transfer

b. Trust incapable of execution

c. Revocation

d. Investment

 

82. Where trust cannot be executed:

a. Trustee becomes owner

b. Property lapses

c. Trustee holds for author or representative

d. Court takes over

 

83. If trust-property remains unexhausted:

a. Beneficiary takes

b. Trustee keeps

c. Government acquires

d. Held for author or legal representative

 

84. Section 84 of the Indian Trusts Act, 1882 deals with:

a. Illegal transfer

b. Trustee duties

c. Beneficiary rights

d. Investment

 

85. Where property is transferred for illegal purpose:

a. Transferee owns it

b. Trustee controls it

c. Court acquires it

d. Transferee holds for transferor

 

86. This applies when:

a. Purpose is executed

b. Transferor is more guilty

c. Purpose not carried out

d. Court orders

 

87. Section 85 of the Indian Trusts Act, 1882 deals with:

a. Illegal bequest

b. Revocation

c. Trustee duties

d. Investment

 

88. Property bequeathed for unlawful purpose:

a. Goes to trustee

b. Goes to beneficiary

c. Held for legal representative

d. Goes to court

 

89. Coercion preventing revocation leads to:

a. Valid transfer

b. Trustee ownership

c. Beneficiary ownership

d. Holding for legal representative

 

90. Section 86 of the Indian Trusts Act, 1882 deals with:

a. Fraudulent transfer

b. Transfer under rescindable contract

c. Trustee liability

d. Beneficiary rights

 

91. Transferee must hold property when:

a. Contract is valid

b. Contract is rescindable

c. Court orders

d. Trustee directs

 

92. Such holding is subject to:

a. No condition

b. Court approval

c. Repayment of consideration

d. Government approval

 

93. Section 87 of the Indian Trusts Act, 1882 deals with:

a. Debtor as representative

b. Trustee duties

c. Beneficiary rights

d. Investment

 

94. Where debtor becomes creditor’s representative:

a. Debt is cancelled

b. Trustee takes

c. Beneficiary takes

d. Debt held for interested persons

 

95. Section 88 of the Indian Trusts Act, 1882 deals with:

a. Fiduciary advantage

b. Trustee liability

c. Investment

d. Beneficiary rights

 

96. A fiduciary gaining advantage must:

a. Keep it

b. Share it

c. Hold it for beneficiary

d. Report to court

 

97. Fiduciary includes:

a. Trustee only

b. Agent, partner, director etc.

c. Beneficiary only

d. Government

 

98. Advantage gained under conflict of interest must:

a. Be retained

b. Be taxed

c. Be transferred to government

d. Be held for benefit of other person

 

99. Section 89 of the Indian Trusts Act, 1882 deals with:

a. Qualified owner advantage

b. Undue influence advantage

c. Existing contract

d. Creditor advantage

 

100. Advantage gained by undue influence must be held for:

a. Trustee

b. Government

c. Injured person

d. Court

 

101. This applies when advantage is gained:

a. With consideration

b. Without consideration or with notice

c. By court order

d. By contract

 

102. Section 90 of the Indian Trusts Act, 1882 deals with:

a. Qualified owner advantage

b. Trustee duties

c. Beneficiary rights

d. Investment

 

103. A qualified owner includes:

a. Trustee only

b. Beneficiary only

c. Tenant for life or co-owner

d. Court

 

104. Advantage gained must be held for:

a. Trustee

b. Government

c. Beneficiary only

d. All persons interested

 

105. Such holding is subject to:

a. Court order

b. Repayment of expenses

c. Government approval

d. Trustee consent

 

106. Section 91 of the Indian Trusts Act, 1882 deals with:

a. Property with notice of contract

b. Trustee liability

c. Investment

d. Beneficiary rights

 

107. A person acquiring property with notice must:

a. Own absolutely

b. Transfer to court

c. Hold for benefit of contracting party

d. Sell property

 

108. This applies where contract:

a. Is void

b. Is unenforceable

c. Can be specifically enforced

d. Is oral

 

109. Section 92 of the Indian Trusts Act, 1882 deals with:

a. Purchase for trust

b. Trustee duties

c. Investment

d. Beneficiary rights

 

110. Buyer must hold property for:

a. Himself

b. Court

c. Beneficiaries

d. Government

 

111. Holding is to extent necessary to:

a. Transfer ownership

b. Give effect to contract

c. Avoid liability

d. Increase value

 

112. Section 93 of the Indian Trusts Act, 1882 deals with:

a. Creditor advantage

b. Trustee duties

c. Investment

d. Beneficiary rights

 

113. Secret advantage by one creditor must be held for:

a. Debtor

b. Court

c. Government

d. Other creditors

 

114. Section 94 of the Indian Trusts Act, 1882:

a. Applies fully

b. Is repealed

c. Governs trusts

d. Deals with liability

 

115. Section 95 of the Indian Trusts Act, 1882 deals with:

a. Trustee duties

b. Obligor’s duties and liabilities

c. Beneficiary rights

d. Investment

 

116. Obligor has duties similar to:

a. Beneficiary

b. Court

c. Trustee

d. Government

 

117. Obligor is entitled to:

a. Profit

b. No remuneration

c. Government benefit

d. Reasonable remuneration

 

118. Obligor may deal with property without Court permission when:

a. Acting fraudulently

b. Under contract

c. Court directs

d. Trustee agrees

 

119. Section 96 of the Indian Trusts Act, 1882 deals with:

a. Saving rights of bona fide purchasers

b. Trustee liability

c. Investment

d. Beneficiary rights

 

120. Rights of transferees in good faith:

a. Are impaired

b. Are protected

c. Are suspended

d. Are void

 

121. This section prevents:

a. Transfer

b. Trust creation

c. Evasion of law

d. Court control

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