Question

Following is untrue about a lease:

• A. There should be a transfer of a right to enjoy an immovable property for a certain term or in perpetuity.
• B. The transfer should be in consideration of a premium or rent.
• C. The lessee is not required to be competent to contract.
• D. The transfer should be a bilateral transaction, the transferee accepting the terms of transfer.

Hint:

In a lease, both parties must have contractual capacity; minors cannot validly enter into a lease without guardian consent.

Answer 1

The Correct Option is C

Step 1: Section 105, Transfer of Property Act.
- Lease = transfer of a right to enjoy immovable property for consideration (premium/rent), with terms agreed.
Step 2: Competency requirement.
- Both lessor and lessee must be competent to contract under the Indian Contract Act, 1872 (Section 11).
- Hence, saying that “lessee is not required to be competent” is false.
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