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Law of Trust, Equity and Fiduciary Relations 2026 Question Paper

Chaudhary Charan Singh University · LLB · Law of Trust, Equity and Fiduciary Relations · 100 questions

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Multiple Choice Questions

100 Q
  1. 1Which is not an equitable right? (A) Trust (B) Mortgage (C) Specific performance (D) Easement
  2. 2Courts of equity were developed to - (A) Punish crimes (B) Provide rigid justice (C) Collect taxes (D) Mitigate harshness of common law
  3. 3Equitable rights originated in - (A) India (B) USA (C) England (D) France
  4. 4Under a trust, the "Beneficial Interest" is also known as - (A) Legal Interest (B) Equitable Interest (C) Trustee Interest (D) None of these
  5. 5Under a trust, who holds the 'Equitable Interest'? (A) Trustee (B) Settlor (C) Beneficiary (D) Executor
  6. 6'Suppressio Veri' is equivalent to - (A) Mistake (B) Undue influence (C) Fraud (D) Misrepresentation
  7. 7Where a person is in a fiduciary relation to another, the burden of proof lies on - (A) The weaker party (B) The dominant party (C) Both (A) & (B) (D) The State
  8. 8In the case of "Cooper Vs Cooper", the court dealt with - (A) Fraud (B) Undue Influence (C) Mistake (D) Election
  9. 9Misrepresentation differs from fraud primarily on the basis of - (A) Intention to deceive (B) Loss caused (C) Number of parties (D) Subject matter
  10. 10Under Equity, a contract is voidable if there is a mistake of - (A) Law of the land (B) Fact essential to the agreement (C) Interpretation of a statute (D) Foreign law
  11. 11Under the Transfer of Property Act, Election is dealt with in - (A) Section 10 (B) Section 35 (C) Section 54 (D) Section 100
  12. 12Where there are equal equities, the ______ shall prevail. (A) Last in time (B) Law (C) Stronger party (D) Equity
  13. 13How did Story classify the jurisdiction of Equity? (A) Primary, Secondary, Tertiary (B) Absolute & Conditional (C) Civil, Criminal & Administrative (D) Exclusive, Concurrent, Auxiliary
  14. 14"Equity is a fresh water canal running alongside the main river of common law." Who said this? (A) Maine (B) Snell (C) Maitland (D) Story
  15. 15The Indian Succession Act applies which equitable doctrine regarding bequests? (A) Election (B) Constructive notice (C) Laches (D) Clean hands
  16. 16Who formulated the famous 12 maxims of Equity? (A) Salmond (B) Austin (C) Blackstone (D) Richard Francis
  17. 17"Once a mortgage, always a mortgage" is a principle created to protect - (A) The mortgagor (B) The mortgagee (C) The state (D) Judge
  18. 18'Constructive Trust' is a trust imposed by - (A) A written document (B) An oral agreement (C) Law/Equity, regardless of intention, to prevent unjust enrichment (D) The Parliament
  19. 19In a conflict between a bonafide purchaser of a legal estate for value without notice and an equitable owner, who wins? (A) The equitable owner (B) The state takes the property (C) Both share equally (D) The bonafide purchaser of the legal estate
  20. 20The maxim "Equity will not assist a volunteer" means - (A) Equity hates volunteer (B) Volunteers can't go to court (C) Equity will not enforce a gratuitous promise (D) Charity is illegal
  21. 21The doctrine of 'Marshalling' is an application of - (A) Equity acts in personam (B) Notice (C) Delay defeats equity (D) He who seeks equity, must do equity
  22. 22In India, what is 'Fiduciary Relationship'? (A) Relation of strangers (B) A hostile relationship (C) A relationship based on trust & confidence (D) A purely commercial relationship
  23. 23The right of redemption of a mortgagor is recognized in India under - (A) The Contract Act (B) The Transfer of Property Act (C) Registration Act (D) Sale of Goods Act
  24. 24Many rules of English Equity have been codified in India in which Act? (A) Indian Penal Code (B) Specific Relief Act (C) Indian Evidence Act (D) The Code of Criminal Procedure
  25. 25In the absence of a specific statutory law, Indian Courts decide cases according to - (A) Roman Law (B) Justice, Equity & Good conscience (C) The king's order (D) American law
  26. 26The equitable doctrine of 'Part Performance' is related to - (A) Delay defeats equity (B) Equity looks to the intent rather than form (C) Clean hands (D) Where equities are equal, law prevails
  27. 27Which maxim is the foundation of the doctrine of consolidation of mortgages? (A) He who seeks equity, must do equity (B) Equity acts in personam (C) Equity follows the law (D) Equality is equity
  28. 28The Penn Vs Lord Baltimore case (1750) is a famous illustration of which maxim? (A) Equity acts in personam (B) Equity follows the law (C) Delay defeats equity (D) Clean hands
  29. 29The maxim "Delay defeats equity" emphasizes the legal principle - (A) Vigilantibus, non dormientibus, jura subveniunt (B) Caveat emptor (C) Ignorantia juris non excusat (D) Res ipsa loquitur
  30. 30The words 'Clean hands' in the maxim look at the plaintiff's conduct - (A) In the past generally (B) Only in relation to the specific matter before the court (C) In future (D) Towards the judge
  31. 31How did Snell define Equity? (A) A portion of natural justice not embodied in common law (B) A strict set of statutes (C) The law of the church (D) An illusion of justice
  32. 32Who said, "The two streams have met and now run in the same channel, but their waters do not mix"? (A) Ashburner (B) Maitland (C) Salmond (D) Blackstone
  33. 33The remedy of 'Specific Performance' is a creature of - (A) Common law (B) Equity (C) Roman law (D) Customary law
  34. 34Which legal concept was entirely a creation of the Court of Chancery? (A) Murder (B) Contract (C) Trusts (Uses) (D) Trespass
  35. 35Equity jurisdiction is primarily - (A) In rem (B) In personam (C) Quasi in rem (D) Criminal
  36. 36Who is considered the philosophical father of the concept of Equity? (A) Plato (B) Aristotle (C) Socrates (D) Cicero
  37. 37According to Roman law, Equity was associated with - (A) Jus Civile (B) Jus Gentium (C) Jus Naturale (D) Both (B) and (C)
  38. 38The term 'Equity' is derived from which Latin word? (A) Equus (B) Aequitas (C) Eques (D) Equator
  39. 39If no time limit is prescribed then time limit for election will be - (A) 1 year (B) 2 years (C) 3 years (D) 6 months
  40. 40Doctrine of Election is considered to be based on the principles of compensation by - (A) Salmond (B) Maitland (C) Winfield (D) Snell
  41. 41Relief from Court of Equity could be obtained - (A) After adjudication by the Court of law (B) Before decision by the Court of law (C) Both (A) and (B) (D) Neither (A) nor (B)
  42. 42Which of the following is a fundamental maxim of equity? (A) Ignorantia juris non excusat (B) Equity follows the law (C) Nemo dat quod non habet (D) Caveat Emptor
  43. 43"He who comes to Equity must come with clean hands" implies - (A) The plaintiff must not be involved in the wrongdoing (B) The defendant must be punished (C) The case must be filed quickly (D) The court is always fair
  44. 44The primary role of equity in the Indian legal system is to - (A) Replace the constitution (B) Supplement the law where statutory law is silent (C) Act only in criminal matters (D) Override statutes
  45. 45Which of the following principles is not a maxim of equity? (A) Equity will not suffer a wrong to be without a remedy (B) Delay defeats equity (C) Equity follows the law (D) Equity is bound by statutory law
  46. 46Which of the following is a key equitable remedy? (A) Damages (B) Injunction (C) Fine (D) Imprisonment
  47. 47The case that established that equity prevails over common law in the event of a conflict is - (A) Earl of Oxford's case (1615) (B) Tulk Vs Moxhay (C) Keech Vs Sandford (D) Re Rose
  48. 48Which of the following is not a characteristic of equity? (A) It provides remedies based upon conscience (B) It is a complete replacement for common law (C) It acts in personam (D) It focuses on intent rather than form
  49. 49Which maxim means that a person seeking help from the court must behave fairly? (A) Equity follows the law (B) He who seeks equity, must do equity (C) Equity will not suffer a wrong (D) Equality is equity
  50. 50Where did the principles of law of equity originate? (A) The Royal courts (B) The Catholic church (C) The Court of Chancery (D) The Parliament
  51. 51Boardman Vs Phipps (1967) is a leading case on - (A) Breach of confidence and secret profits (B) Insolvency (C) Marriage contracts (D) Negligence in torts
  52. 52In which case did the Supreme Court of India deal with the fiduciary duty of a lawyer towards a client? (A) Maneka Gandhi Vs Union of India (B) M.C. Mehta Vs Union of India (C) Keshavananda Bharati Vs State of Kerala (D) V.C. Rangadurai Vs D. Gopalan
  53. 53The principle of 'undue influence' in fiduciary relations was famously discussed in - (A) Hadley Vs Baxendale (B) R Vs Dudley & Stephens (C) Allcard Vs Skinner (D) Balfour Vs Balfour
  54. 54Tulk Vs Moxhay (1848) deals with - (A) Restrictive covenants running with the land (B) Specific performance (C) Undue influence (D) Fraud in equity
  55. 55In which case was the 'doctrine of part performance' primarily evolved? (A) Maddison Vs Alderson (B) Walsh Vs Lonsdale (C) Cooper Vs Phibbs (D) Knight Vs Knight
  56. 56The principle "He who seeks equity must do equity" was highlighted in - (A) Stratfield Vs Stratfield (B) Graf Vs Hope Building Corp (C) Berry Vs Berry (D) Lodge Vs National Union Investment Co. Ltd.
  57. 57In the case of Official Trustee, West Bengal Vs Sachindra Nath Chatterjee, the S.C. held that - (A) Trustees can change terms at will (B) The court has inherent powers to alter trusts (C) The court can not alter the terms of a trust (D) Beneficiaries can sell property
  58. 58The Indian Trusts Act, 1882 applies to - (A) Private trusts (B) Public religious trusts (C) Charitable endowments (D) All of the above
  59. 59Chapter IX of the Indian Trusts Act deals with - (A) Religious trust (B) Obligations in the nature of trusts (C) Appointment of trustees (D) Public trusts
  60. 60Which case established that a trustee can not make a personal profit from the trust? (A) Mohori Bibee Vs Dharmodas Ghose (B) Salomon Vs Salomon (C) Donoghue Vs Stevenson (D) Keech Vs Sandford
  61. 61Section 20 of the Indian Trusts Act deals with - (A) Investment of trust money (B) Sale of trust property (C) Death of beneficiary (D) New trustee
  62. 62In Mussoorie Bank Vs Raynor, the Privy Council dealt with which aspect of the Indian Trusts Act? (A) Duties of trustees (B) Extinction of trust (C) Uncertainty of subject matter (D) Appointment of trustees
  63. 63In which landmark case did the court hold that "The three certainties (intention, subject matter & beneficiary) are essential for a valid trust"? (A) Knight Vs Knight (B) Mussoorie Bank Vs Raynor (C) Shanti Vijay Vs Princess Fatima (D) Official Trustee Vs Sachindra
  64. 64'Proper care' by a trustee is a right of the beneficiary. Which section provides for the right to proper trustees? (A) Section 59 (B) Section 60 (C) Section 61 (D) Section 63
  65. 65Under section 58 of the Trusts Act, the beneficiary has right to - (A) Sell the trust property (B) Appoint new trustees (C) Transfer their interests (D) Change the trust deed
  66. 66If a trustee commits a breach of trust with the consent of beneficiary, the beneficiary - (A) Can still sue the trustee (B) Is not responsible at all (C) Is entitled to double compensation (D) Is liable to the extent of his interest
  67. 67A beneficiary has the right to inspect trust documents & accounts. This is a - (A) Discretionary power (B) Moral duty (C) Liability (D) Statutory right
  68. 68Which section of the Indian Trusts Act deals with the 'right to rents & profits'? (A) Section 56 (B) Section 57 (C) Section 58 (D) Section 59
  69. 69The liability of a trustee for a breach of trust is - (A) Criminal (B) Civil (C) Both (A) & (B) (D) Moral only
  70. 70A trustee has the power to sell trust property under which section of the Trusts Act? (A) 36 (B) 37 (C) 40 (D) 42
  71. 71Which section of the Trusts Act deals with the 'Duty to be impartial'? (A) Section 14 (B) Section 15 (C) Section 17 (D) Section 19
  72. 72Under section 11 of the Indian Trusts Act, a trustee is bound to fulfil the ______ of the author. (A) Wishes (B) Purpose (C) Directions (D) Personal debts
  73. 73How many trustees can be appointed for a single trust? (A) Only one (B) Maximum three (C) As many as the author of the trust chooses (D) Fixed by the government
  74. 74Under which section of the Indian Trusts Act can a new trustee be appointed by the court? (A) Section 70 (B) Section 73 (C) Section 74 (D) Section 75
  75. 75Under section 73 of the Trusts Act, a trustee may be discharged from his office by - (A) Death (B) Continuous absence from India for 6 months (C) Becoming an insolvent (D) All of the above
  76. 76A new trustee can be appointed by - (A) The court (B) The person nominated in the trust deed (C) Surviving trustees (D) All of the above
  77. 77A trust of movable property can be created by - (A) Registration only (B) Order of court (C) Oral declaration & delivery of property (D) State government only
  78. 78What is the liability of a trustee for a breach of trust? (A) Fine only (B) No liability (C) To make good the loss to the trust property (D) Imprisonment only
  79. 79Disclaimer of trust by a trustee must be made - (A) Within 10 years (B) Within a reasonable time (C) Only after the death of settlor (D) Never
  80. 80According to section 77 of the Indian Trusts Act, a trust is extinguished when - (A) Its purpose is completely fulfilled (B) Its purpose becomes unlawful (C) The trust is properly revoked (D) All of the above
  81. 81Under which section of the Indian Trusts Act, 1882 is "creation of trust" defined? (A) Section 3 (B) Section 4 (C) Section 5 (D) Section 6
  82. 82A trust is created by any words which indicate with reasonable certainty an intention on the part of the author to create it. This is known as - (A) The rule of certainty (B) The rule of perpetuity (C) The doctrine of cy-pres (D) None of the above
  83. 83A trustee is bound to maintain the property with - (A) Ordinary prudence (B) Extreme carelessness (C) At his own discretion (D) Expert's knowledge
  84. 84In which section of the Indian Trusts Act, 1882 is the term "trust" defined? (A) Section 2 (B) Section 3 (C) Section 4 (D) Section 5
  85. 85Which of the following can not be the subject matter of a trust? (A) Movable property (B) Immovable property (C) A mere beneficial interest (D) Future property
  86. 86In which trust does the settlor not mention the name of beneficiaries clearly but use words of hope or desire? (A) Discretionary trust (B) Resulting trust (C) Fixed trust (D) Precatory trust
  87. 87A trust that arises by operation of law is generally termed as - (A) Private trust (B) Constructive trust (C) Public trust (D) Discretionary trust
  88. 88Can a proposed beneficiary renounce his interest in the trust? (A) Never (B) Only with the permission of the court (C) Only if the author dies (D) Yes, by disclaimer addressed to the trustee
  89. 89Who can be a beneficiary? (A) Any human being (B) Only a relative of the author (C) Any person capable of holding property (D) Any citizen of India
  90. 90For a valid trust to be created "three certainties" are required. Which is not one of them? (A) Certainty of intention (B) Certainty of subject matter (C) Certainty of beneficiaries (D) Certainty of profit
  91. 91A trust in relation to immovable property must be declared by - (A) An oral agreement (B) A simple letter (C) Possession only (D) Non-testamentary instrument in writing & registered
  92. 92If a person buys property in the name of another but intends to keep the benefit for themselves, it creates a - (A) Resulting trust (B) Charitable trust (C) Precatory trust (D) Secret trust
  93. 93When a trust is created by the construction of equity in order to satisfy the demands of justice, it is a - (A) Public trust (B) Private trust (C) Constructive trust (D) Illusory trust
  94. 94A trust created by the free will and intention of the author is known as - (A) Constructive trust (B) Resulting trust (C) Express trust (D) Implied trust
  95. 95Under section 4 of the Trusts Act, a trust may be created for - (A) Any purpose (B) Only charitable purposes (C) Only religious purposes (D) Any lawful purpose
  96. 96The subject-matter of the trust is called - (A) Trust property (B) Trust money (C) Trust deed (D) Both (A) & (B)
  97. 97A trust is an obligation annexed to the ______ of property. (A) Possession (B) Sale (C) Ownership (D) Lease
  98. 98The Indian Trusts Act, 1882 came into force on - (A) 01 January 1882 (B) 01 March 1882 (C) 01 July 1882 (D) 01 September 1882
  99. 99Under trust, trustee holds - (A) Legal ownership (B) Equitable ownership (C) No ownership (D) Moral duty only
  100. 100Beneficiary in trust has - (A) Legal ownership (B) Equitable ownership (C) No ownership (D) Criminal liability