Question

Choose the correct option based on the statements given:
(1) A transfer of ownership of property that is made voluntarily and without consideration is called a Lease
(2) When two persons transfer ownership of one thing for the ownership of another, it is called Gift

• A. Only (1) is true
• B. Only (2) is true
• C. Both (1) and (2) are true
• D. Both (1) and (2) are false

Hint:

Understand key legal terminology:
- \textbf{Gift}: Transfer without consideration.
- \textbf{Lease}: Transfer of possession, not ownership, with consideration.
- \textbf{Exchange}: Mutual transfer of ownership.
- Always check the nature of transfer (ownership or possession) and presence of consideration.

Answer 1

The Correct Option is D

Let us examine the definitions of the legal terms involved in the statements.
Statement (1) claims that a voluntary transfer of ownership without consideration is called a Lease. This is incorrect.
- A Gift is defined as the voluntary transfer of property ownership without any consideration.
- A Lease is a transfer of the right to use property for a certain period in exchange for consideration (like rent), not ownership.
Statement (2) says that when two persons exchange ownership of one thing for another, it is called a Gift. This is also incorrect.
- Such an exchange is known as a Barter or Exchange, not a Gift.
- A Gift involves one party giving something voluntarily to another without expecting anything in return.
Thus, both statements are factually incorrect.