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     EduGorilla 
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    A makes an absolute gift of a house to B, with the direction that B shall reside in it. Which of the following statements is the most accurate application of the principle set out below? Principle Section 11 of the Transfer of Property Act, 1882, stipulates that in the event of a transfer of property where an absolute interest is created in the property by one person in favour of the other, but the terms of transfer direct that such interest be applied or enjoyed in a particular manner, the transferee may enjoy or dispose off the interest as if there is no such condition.

    Options :-

    1. The condition is void because A has no right to prescribe any conditions.

    2. The condition is valid and B must live in the house as the house may be forfeited if he does not do so.

    3. The condition is valid and B must live in the house so as to act as caretaker to A's house in the adjoining plot.

    4. The condition is void and B may or may not live in the house, as per his discretion.

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