THE INDIAN TRUSTS ACT, 1882
1. Trustee is not responsible for:
a. Profit
b. Delay
c. Loss caused to beneficiary on resale
d. Court costs
2. Trustee has discretion regarding:
a. Price of property
b. Nature of trust
c. Time of sale or purchase
d. Beneficiary rights
3. Section 39 of the Indian Trusts Act, 1882 deals with:
a. Power to convey
b. Investment
c. Trustee liability
d. Beneficiary rights
4. Trustee may convey property:
a. Only partially
b. Only by court
c. In manner necessary to complete sale
d. Only by deed
5. Section 40 of the Indian Trusts Act, 1882 deals with:
a. Sale of property
b. Power to vary investments
c. Trustee duties
d. Beneficiary rights
6. A trustee may:
a. Hold investment permanently
b. Call in and vary investments
c. Transfer to beneficiary
d. Avoid investment
7. Investment must be in:
a. Any asset
b. Personal property
c. Unauthorized securities
d. Securities under section 20
8. Change of investment requires consent of:
a. Trustee
b. Government
c. Person entitled to income
d. Court only
9. Such consent must be:
a. Oral
b. Written
c. Implied
d. Not required
10. Section 41 of the Indian Trusts Act, 1882 deals with:
a. Investment
b. Minor’s property application
c. Sale
d. Conveyance
11. Trustee may apply income of minor for:
a. Business
b. Personal use
c. Maintenance, education or advancement
d. Investment only
12. Trustee may pay such income to:
a. Court
b. Government
c. Guardian of minor
d. Beneficiary only
13. Remaining income must be:
a. Spent
b. Distributed
c. Donated
d. Accumulated and invested
14. Accumulation is done by:
a. Simple interest
b. Compound interest
c. No interest
d. Fixed rate
15. Trustee may apply accumulations:
a. Never
b. Only by court
c. As current income arising in the current year
d. Only after majority
16. If income is insufficient, trustee may use property:
a. Freely
b. With beneficiary consent
c. With court permission of principal civil curt of original jurisdiction
d. Never
17. Section 42 of the Indian Trusts Act, 1882 deals with:
a. Receipts by trustee
b. Investment
c. Sale
d. Liability
18. Trustee may give receipt for:
a. Immovable property
b. Money, securities or movable property
c. Court orders
d. Government funds
19. Such receipt discharges:
a. Trustee
b. Beneficiary
c. Court
d. Person delivering property
20. Discharge applies in absence of:
a. Negligence
b. Delay
c. Fraud
d. Mistake
21. Section 43 of the Indian Trusts Act, 1882 deals with:
a. Power to compound, etc.
b. Trustee liability
c. Beneficiary rights
d. Suspension of powers
22. Powers under Section 43 are exercised by:
a. Single trustee only
b. Two or more trustees acting together
c. Beneficiary
d. Court
23. Trustees may accept:
a. Only full payment
b. Only cash
c. Composition or security for debt
d. Court decree only
24. Trustees may allow:
a. Immediate payment
b. No payment
c. Court approval
d. Time for payment of debt
25. Trustees may settle disputes by:
a. Ignoring claims
b. Compromise or arbitration
c. Court decree only
d. Government order
26. Trustees acting in good faith are:
a. Liable for all loss
b. Partially liable
c. Not responsible for loss
d. Criminally liable
27. A sole trustee may exercise these powers when:
a. Court allows
b. Beneficiary consents
c. Instrument authorizes
d. Government directs
28. Section 43 applies subject to:
a. Court rules
b. Instrument of trust
c. Beneficiary wishes
d. Government policy
29. Section 43 applies to:
a. All trusts
b. Trusts before Act
c. Future trusts only
d. Trusts created after Act
30. Section 44 of the Indian Trusts Act, 1882 deals with:
a. Trustee liability
b. Beneficiary rights
c. Power of continuing trustees
d. Investment rules
31. Where one of several trustees disclaims or dies:
a. Trust ends
b. Authority passes to continuing trustees
c. Court takes over
d. Beneficiary decides
32. Continuing trustees cannot exercise authority when:
a. Court objects
b. Beneficiary refuses
c. Government directs
d. Instrument requires more trustees than remaining
33. Section 45 of the Indian Trusts Act, 1882 deals with:
a. Trustee duties
b. Investment
c. Suspension of trustee’s powers by decree
d. Beneficiary rights
34. After decree for execution of trust, trustee must:
a. Act freely
b. Ignore decree
c. Act independently
d. Act in conformity with decree
35. Trustee may act otherwise only with:
a. Beneficiary consent
b. Government approval
c. Court sanction
d. Registrar approval
36. During appeal, sanction must be taken from:
a. Trial Court
b. Government
c. Beneficiary
d. Appellate Court
37. Section 46 of the Indian Trusts Act, 1882 deals with:
a. Delegation of trustee
b. Renunciation of trust after acceptance
c. Trustee liability
d. Beneficiary rights
38. A trustee who has accepted trust:
a. May freely renounce
b. Cannot renounce
c. Can renounce only in specified cases
d. Must seek beneficiary approval always
39. Renunciation is allowed with permission of:
a. Government
b. Principal Civil Court of original jurisdiction
c. Beneficiary only
d. Registrar
40. Renunciation is allowed with consent of:
a. Minor beneficiary
b. Court
c. Competent beneficiary
d. Government
41. Renunciation may also be allowed by:
a. Court decree
b. Government order
c. Trustee decision
d. Special power in instrument of trust
42. Section 47 of the Indian Trusts Act, 1882 deals with:
a. Trustee duties
b. Trustee liability
c. Trustee cannot delegate
d. Beneficiary rights
43. A trustee:
a. May delegate freely
b. Cannot delegate duties
c. Must delegate duties
d. Delegates only to court
44. Delegation is allowed when:
a. Trustee desires
b. Court directs
c. Instrument of trust provides
d. Beneficiary objects
45. Delegation is also allowed in:
a. Extraordinary situations
b. Regular course of business
c. Personal matters
d. Government orders
46. Delegation is allowed when:
a. Optional
b. Profitable
c. Necessary
d. Court ordered
47. Delegation is allowed with consent of:
a. Minor beneficiary
b. Trustee
c. Court
d. Competent beneficiary
48. Appointment of attorney for ministerial act is:
a. Delegation
b. Prohibited
c. Not a delegation
d. Void
49. Ministerial act refers to:
a. Discretionary act
b. Judicial act
c. Administrative decision
d. Act involving no independent discretion
50. Section 48 of the Indian Trusts Act, 1882 deals with:
a. Control of discretion
b. Co-trustees acting jointly
c. Trustee liability
d. Trustee remuneration
51. Where there are multiple trustees:
a. One may act alone
b. Majority may act
c. All must join in execution
d. Court decides
52. Exception to joint action exists when:
a. Beneficiary agrees
b. Court orders
c. Instrument of trust provides otherwise
d. Government directs
53. Section 49 of the Indian Trusts Act, 1882 deals with:
a. Trustee duties
b. Control of discretionary power
c. Investment rules
d. Trustee liability
54. Discretionary power may be controlled when:
a. Used frequently
b. Not exercised reasonably and in good faith
c. Beneficiary objects
d. Trustee requests
55. Control is exercised by:
a. Government
b. Beneficiary
c. Registrar
d. Principal Civil Court of original jurisdiction
56. Section 50 of the Indian Trusts Act, 1882 deals with:
a. Trustee liability
b. Trustee remuneration
c. Beneficiary rights
d. Investment
57. A trustee has no right to remuneration unless:
a. He demands
b. Court directs
c. Express provision or contract exists
d. Beneficiary refuses
58. Remuneration includes compensation for:
a. Property
b. Skill and time
c. Court fees
d. Government duty
59. Section 50 does NOT apply to:
a. Private trustees
b. Co-trustees
c. Official Trustee etc.
d. Beneficiaries
60. Section 51 of the Indian Trusts Act, 1882 deals with:
a. Trustee profit restriction
b. Trustee liability
c. Investment
d. Delegation
61. A trustee must not use trust-property:
a. For beneficiary
b. For his own profit
c. For court
d. For government
62. Use of trust-property must be:
a. Personal
b. Arbitrary
c. Unconnected with trust
d. Connected with trust purpose
63. Section 52 of the Indian Trusts Act, 1882 deals with:
a. Trustee purchase
b. Sale rules
c. Trustee or agent cannot buy trust-property
d. Beneficiary rights
64. A trustee for sale cannot:
a. Sell property
b. Lease property
c. Manage property
d. Buy trust-property
65. This restriction applies to:
a. Trustee only
b. Beneficiary
c. Agent of trustee
d. Court
66. Section 53 of the Indian Trusts Act, 1882 deals with:
a. Trustee duties
b. Trustee buying beneficiary interest
c. Investment
d. Delegation
67. Trustee may buy trust-property only with:
a. Beneficiary consent
b. Court permission
c. Government approval
d. Registrar approval
68. Court grants permission when:
a. Trustee requests
b. Beneficiary agrees
c. Advantage to beneficiary
d. Government directs
69. Trustee for purchase cannot:
a. Buy property
b. Lease property
c. Obtain mortgage
d. Buy property for himself
70. Section 54 of the Indian Trusts Act, 1882 deals with:
a. Investment rules
b. Co-trustees lending restrictions
c. Trustee duties
d. Beneficiary rights
71. Trustee must not invest trust-money on:
a. Government security
b. Public bonds
c. Mortgage of himself or co-trustee
d. Approved securities
72. This restriction applies when trustee must invest on:
a. Shares
b. Personal security
c. Bonds
d. Court order
73. Section 55 of the Indian Trusts Act, 1882 deals with:
a. Right to rents and profits
b. Right to sue
c. Trustee duties
d. Investment
74. The beneficiary has a right to:
a. Ownership
b. Control
c. Rents and profits of trust-property
d. Transfer of title
75. This right is subject to:
a. Court order
b. Instrument of trust
c. Government policy
d. Trustee discretion
76. Section 56 of the Indian Trusts Act, 1882 deals with:
a. Right to inspect
b. Right to transfer
c. Right to specific execution
d. Right to sue
77. Beneficiary is entitled to:
a. Modify trust
b. Specific execution of trust intention
c. Remove trustee
d. Sell property
78. Transfer of possession can be demanded when:
a. Beneficiary is minor
b. Trustee refuses
c. Only one competent beneficiary exists
d. Court orders
79. Where multiple beneficiaries exist:
a. Majority decision is enough
b. Court decides
c. Trustee decides
d. All must be competent and of one mind
80. Married woman restriction applies:
a. Always
b. Only before marriage
c. During marriage
d. After divorce
81. Section 57 of the Indian Trusts Act, 1882 deals with:
a. Right to inspect documents
b. Right to sue
c. Trustee liability
d. Investment
82. Beneficiary may inspect:
a. Only accounts
b. Only instrument
c. Only vouchers
d. All trust-related documents
83. Right extends against:
a. Trustee only
b. Persons claiming under trustee with notice
c. Court only
d. Government
84. Beneficiary may take:
a. Originals
b. Copies
c. Possession
d. Ownership
85. Section 58 of the Indian Trusts Act, 1882 deals with:
a. Right to transfer beneficial interest
b. Right to inspect
c. Trustee duties
d. Investment
86. Beneficiary may transfer interest if:
a. Minor
b. Court allows
c. Competent to contract
d. Trustee consents
87. Transfer is subject to:
a. Court order
b. Existing law
c. Trustee approval
d. Government rules
88. Married woman cannot transfer interest:
a. Before marriage
b. After marriage
c. During marriage
d. Always
89. Section 59 of the Indian Trusts Act, 1882 deals with:
a. Right to sue for execution
b. Right to transfer
c. Trustee duties
d. Investment
90. Beneficiary may sue when:
a. Trustee acts properly
b. No trustee exists or execution becomes impracticable
c. Property is sold
d. Court orders
91. In such case, trust is executed by:
a. Beneficiary
b. Trustee
c. Government
d. Court
92. Section 60 of the Indian Trusts Act, 1882 deals with:
a. Trustee duties
b. Proper trustees
c. Investment
d. Beneficiary rights
93. Beneficiary has right to:
a. Appoint trustee
b. Remove trustee
c. Proper administration by proper persons
d. Sell property
94. A person domiciled abroad is:
a. Proper trustee
b. Preferred trustee
c. Not proper trustee
d. Court-appointed trustee
95. Minimum trustees required when money involved:
a. One
b. Two
c. Three
d. Four
96. Section 61 of the Indian Trusts Act, 1882 deals with:
a. Wrongful purchase
b. Beneficiary’s right to compel performance
c. Trustee liability
d. Investment
97. Beneficiary can compel trustee to:
a. Transfer property
b. Perform duty
c. Resign
d. Invest money
98. Beneficiary may restrain trustee from:
a. Acting prudently
b. Following directions
c. Committing breach of trust
d. Holding property
99. Section 62 of the Indian Trusts Act, 1882 deals with:
a. Trustee duties
b. Wrongful purchase by trustee
c. Beneficiary rights
d. Trustee liability
100. Where trustee wrongfully buys trust-property, beneficiary may:
a. Claim damages only
b. Seek declaration or retransfer
c. Remove trustee
d. File criminal case
101. Retransfer is possible when property is:
a. Sold
b. Destroyed
c. Still in trustee’s hands
d. Mortgaged
102. Retransfer can also be sought from:
a. Court
b. Government
c. Beneficiary
d. Purchaser with notice
103. Beneficiary must repay:
a. Only purchase price
b. Purchase money with interest and expenses
c. Only interest
d. Double amount
104. Trustee must account for:
a. Gross income
b. Net profits
c. Loss
d. Interest only
105. Trustee in possession is liable for:
a. Rent
b. Occupation-rent
c. Fine
d. Damages
106. Beneficiary may deduct amount if property is:
a. Improved
b. Preserved
c. Deteriorated
d. Sold
107. Rights of lessees in good faith are:
a. Cancelled
b. Protected
c. Suspended
d. Void
108. Beneficiary cannot claim retransfer if:
a. Trustee refuses
b. Court denies
c. He ratified sale with full knowledge
d. Property is damaged
109. Section 63 of the Indian Trusts Act, 1882 deals with:
a. Rights against third persons
b. Trustee liability
c. Investment
d. Beneficiary duties
110. When trust-property reaches third person inconsistently:
a. Trustee loses rights
b. Beneficiary may claim declaration
c. Court takes over
d. Government controls
111. Beneficiary may:
a. Take possession directly
b. File criminal case
c. Require formal admission or institute suit
d. Ignore transfer
112. When trust-property is converted:
a. Rights are lost
b. Trustee gains ownership
c. Beneficiary has similar rights in converted property
d. Court decides ownership
113. Tracing is possible when property is:
a. Destroyed
b. Sold without record
c. Mixed irretrievably
d. Traceable in hands of trustee or representative
114. Section 64 of the Indian Trusts Act, 1882 deals with:
a. Saving rights of transferees
b. Trustee liability
c. Beneficiary rights
d. Investment
115. Beneficiary cannot claim against transferee who is:
a. Minor
b. Trustee
c. Bona fide purchaser without notice
d. Government
116. Protection extends to transferee:
a. Without consideration
b. With notice
c. From such bona fide transferee
d. Court appointed
117. A judgment-creditor purchasing trust-property is:
a. Protected transferee
b. Bona fide holder
c. Not a transferee for consideration
d. Trustee
118. Section 63 does not apply to:
a. Immovable property
b. Movable property
c. Trust money
d. Negotiable instruments in circulation
119. Section 65 of the Indian Trusts Act, 1882 deals with:
a. Trustee duties
b. Acquisition of trust-property by trustee
c. Beneficiary rights
d. Investment
120. If trustee reacquires property wrongfully sold:
a. Trust ends
b. Property becomes free
c. Property again subject to trust
d. Court decides
121. This applies despite:
a. Court order
b. Trustee’s intention
c. Lack of notice of intervening transferees
d. Beneficiary consent
122. Section 66 of the Indian Trusts Act, 1882 deals with:
a. Blended property
b. Trustee liability
c. Beneficiary rights
d. Investment