Correct Answer:
B. Crops & improvements
When a tenancy is resumed by an authority, the tenant is typically compensated for their tangible investments and efforts on the land, rather than for the land itself or speculative future earnings. This principle ensures fairness to the tenant for their contributions.
- Option B: Crops & improvements is correct. Compensation for crops acknowledges the tenant's labor and investment in the current harvest, while compensation for improvements (e.g., wells, structures) recognizes capital invested to enhance the land's productivity during their tenure.
- Option A: Land is incorrect; the land typically belongs to the landlord or state, not the tenant.
- Option C: Lost profits are often speculative and difficult to quantify, making them an unsuitable basis for compensation.
- Option D: No compensation would be unjust, as it disregards the tenant's efforts and investments.