Question

A transfer of an interest in specific immoveable property for the purpose of securing the payment of money advanced or to be advanced by way of loan, an existing or future debt, or the performance of an engagement which may give rise to a pecuniary liability - is called

• A. Sale
• B. Gift
• C. Mortgage
• D. Lease

Hint:

Associate keywords with different types of transfers: Sale = Ownership + Price. Gift = Ownership - Consideration. Lease = Right to Enjoy + Rent. Mortgage = Interest as Security + Debt.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
The question provides a legal definition of a specific type of transfer of immovable property and asks to identify it. This requires knowledge of the definitions provided in the Transfer of Property Act, 1882.
Step 2: Detailed Explanation:
The text in the question is a verbatim reproduction of the definition of a Mortgage as provided in Section 58(a) of the Transfer of Property Act, 1882.
Let's look at the other options for comparison:
- Sale (Section 54): Is a transfer of \textit{ownership} in exchange for a \textit{price} paid or promised. - Gift (Section 122): Is a transfer of ownership made voluntarily and \textit{without consideration}. - Lease (Section 105): Is a transfer of a \textit{right to enjoy} such property for a certain time in consideration for a price paid or promised (rent). The key phrase in the question is "for the purpose of securing the payment of money". This is the essential characteristic of a mortgage, where an interest in property is transferred not absolutely, but as security for a debt.
Step 3: Final Answer:
The definition provided is the exact legal definition of a mortgage under the TPA. Therefore, option (C) is the correct answer.