Write a short note on Notice.

Question: Write a short note on Notice. [MPJS 2006]

Find the answer to the mains question of Property Law only on Legal Bites. [Write a short note on Notice.]

Answer

The concept of Notice for the purpose of the Transfer of Property is given under Section 3 of the Transfer of Property Act, 1882 (TPA). Notice means to have knowledge of something i.e. to know something. In law, it means knowledge of a fact. It is used to decide on conflicting claims of two parties. In law, the Notice or Knowledge of a fact affects one’s legal rights and liabilities.

Section 3 of the Transfer of Property Act says that A Notice can be; “Actual or express Notice” or “Constructive Notice”, or it may be imputed to the transferee when information of the fact has been obtained by his Agent.

Express or Actual Notice

Actual notice means when a person actually knows about the existence of a fact. The fact must be definite information given in the course of negotiations by a person interested in the property. The information of fact should not be a rumour or hearsay and thus is not bound by such information.

In other words, actual notice takes place when the information is such that it would operate upon the mind of a rational man and would make him act based on the knowledge so acquired.

Constructive Notice

According to Section 3, a person is said to have notice of a fact, which he would have known, but for his “gross negligence” or “willful abstention from making an enquiry or search” does not know. However, it is such knowledge which a person with ordinary prudence ought to have known. In other words, constructive notice of facts are those facts which a person ought to have known, but because of gross negligence or wilful abstention does not know it.

Thus in Constructive notice, there is a legal presumption, that a person should have known a fact as if he actually knows it.

Therefore Constructive notice is knowledge of those facts which a court imputes on a person. If the circumstances indicate that a reasonably prudent person ought to have known a particular fact related to the transaction of transfer, then he will be deemed to know it.

Illustration: A sells the house by a registered document to B. He later enters into a contract with C to sell him the same house. The law imposes a duty upon C to inspect the registers at the Registrar’s office, and if he does that, he would come to know about the sale in favour of B. A failure to inspect the register will be detrimental to the interests of C, as he would be imputed with constructive notice of the registered transaction.