Section 12 of the Transfer of Property Act is not applicable:-
Verified Answer
A. Where the transfer is by way of sale
B. Where the transfer is by way of gift
C. Where the transfer is by way of lease
D. Where the transfer is by way of exchange
Explanation:
Section 12 of the Transfer of Property Act, 1882, deals with conditions making interest determinable on insolvency or attempted alienation. It states that such a condition is void, 'except in a lease where the condition is for the benefit of the lessor'. Thus, the rule of Section 12 (making the condition void) is not applicable to leases in the same way it is to other transfers, as it allows such conditions in leases.