TRANSFER OF PROPERTY ACT 1882, PART-III OF CHAPTER-2

Here we are going to cover the Transfer of Property Act 1882, Part-III of Chapter 2

Transfers of Property by Act of Parties

Transfer contingent on happening of specified uncertain event (Section 23)

Where, on a transfer of property, an interest therein is to accrue to a specified person if a specified uncertain event shall happen, and no time is mentioned for the occurrence of that event, the interest fails unless such event happens before, or at the same time as, the intermediate or precedent interest ceases to exist.

Transfer to such of certain persons as survive at some period not specified (Section 24)

Where, on a transfer of property, an interest therein is to accrue to such of certain persons as shall be surviving at some period, but the exact period is not specified, the interest shall go to such of them as shall be alive when the intermediate or precedent interest ceases to exist, unless a contrary intention appears from the terms of the transfer.

Example

A transfer’s property to B for life, and after his death to C and D, equally to be divided between them, or to the survivor of them. C dies during the lifetime of B. D survives B. At B’s death, the property passes to D.

Conditional transfer (Section 25)

An interest created on a transfer of property and dependent upon a condition fails if the fulfillment of the condition is impossible, or is forbidden by law, or is of such a nature that, if permitted, it would defeat the provisions of any law, or is fraudulent, or involves or implies injury to the person or property of another, or the court regards it as immoral or opposed to public policy.

Example

(a) A lets a farm to B on condition that he shall walk a hundred miles in an hour. The lease is void.

(b) A gives Rs. 500 to B on the condition that he shall marry A’s daughter C. At the date of the transfer, C was dead. The transfer is void.

(c) A transfers Rs. 500 to B on the condition that she shall murder C. The transfer is void.

(d) A transfers Rs. 500 to his niece C if she will desert her husband. The transfer is void.

 Fulfillment of condition precedent (Section 26)

Where the terms of a transfer of property impose a condition to be fulfilled before a person can take an interest in the property, the condition shall be deemed to have been fulfilled if it has been substantially complied with.

Example

(a) A transfers Rs. 5000 to B on the condition that he shall marry with the consent of C, D, and E. E dies. B marries with the consent of C and D. B is deemed to have fulfilled the condition.

(b) A transfers Rs. 5000 to B on the condition that he shall marry with the consent of C, D, and E. B marries without the consent of C, D and E, but obtains their consent after the marriage. B has not fulfilled the condition.

Conditional transfer to one person coupled with transfer to another on failure of prior disposition (Section 27)

Where, on a transfer of property, an interest therein is created in favor of one person, and by the same transaction an ulterior disposition of the same interest is made in favor of another, if the prior disposition under the transfer shall fail, the ulterior disposition shall take effect upon the failure of the prior disposition, although the failure may not have occurred in the manner contemplated by the transferor.

But, where the intention of the parties to the transaction is that the ulterior disposition shall take effect only in the event of the prior disposition failing in a particular manner, the ulterior disposition shall not take effect unless the prior disposition fails in that manner.

Example

(a) A transfers Rs. 500 to B on the condition that he shall execute a certain lease within three months after A’s death, and, if he should neglect to do so, to C. B dies in A’s lifetime. The disposition in favor of C takes effect.(b) A transfers property to his wife; but, in case she should die in his lifetime, transfer to B that which he had transferred to her. A and his wife perish together, under circumstances that make it impossible to prove that she died before him. The disposition in favor of B does not take effect.

Ulterior transfer is conditional on happening or not happening of a specified event (Section 28)

On a transfer of property, an interest therein may be created to accrue to any person with the condition superadded that in case a specified uncertain event shall happen such interest shall pass to another person, or that in case a specified uncertain event shall not happen such interest shall pass to another person. In each case the dispositions are subject to the rules contained in sections 10, 12, 21, 22, 23, 24, 25 and 27.

 Fulfillment of condition subsequent (Section 29)

An ulterior disposition of the kind contemplated by the last preceding section cannot take effect unless the condition is strictly fulfilled.

Example

A transfers Rs. 500 to B, to be paid to him on his attaining his majority or marrying, with a proviso that, if B dies as minor or marries without C’s consent, Rs. 500 shall go to D. B marries when only 17 years of age, without C’s consent. The transfer to D takes effect.

Prior disposition is not affected by the invalidity of ulterior disposition (Section 30)

If the ulterior disposition is not valid, the prior disposition is not affected by it.

Illustration

A transfers a farm to B for her life, and, if she does not desert her husband to C. B is entitled to the farm during her life as if no condition had been inserted.

Condition that transfer shall cease to have effect in case specified uncertain event happens or does not happen (Section 31)

Subject to the provisions of section 12, on a transfer of property an interest therein may be created with the condition superadded that it shall cease to exist in case a specified uncertain event shall happen, or in case a specified uncertain event shall not happen.

Example

(a) A transfers a farm to B for his life, with a proviso that, in case B cuts down a certain wood, the transfer shall cease to have any effect. B cuts down the wood. He loses his life interest in the farm.

(b) A transfers a farm to B, provided that, if B shall not go to England within three years after the date of the transfer, his interest in the farm shall cease. B does not go to England within the term prescribed. His interest in the farm ceases.

Such condition must not be invalid (Section 32)

In order that a condition that an interest shall cease to exist may be valid, it is necessary that the event to which it relates be one that could legally constitute the condition of the creation of an interest.

Transfer conditional on performance of act, no time being specified for performance (Section 33)

Where, on a transfer of property, an interest therein is created subject to a condition that the person taking it shall perform a certain act, but no time is specified for the performance of the act, the condition is broken when he renders impossible, permanently or for an indefinite period, the performance of the act.

Transfer conditional on performance of act, time being specified (Section 34)

Where an act is to be performed by a person either as a condition to be fulfilled before an interest created on a transfer of property is enjoyed by him, or as a condition on the non-fulfillment of which the interest is to pass from him to another person, and a time is specified for the performance of the act, if such performance within the specified time is prevented by the fraud of a person who would be directly benefited by non-fulfillment of the condition, such further time shall as against him be allowed for performing the act as shall be requisite to make up for the delay caused by such fraud.

But if no time is specified for the performance of the act, then, if its performance is by the fraud of a person interested in the non-fulfillment of the condition rendered impossible or indefinitely postponed, the condition shall as against him be deemed to have been fulfilled

MUST READ

TRANSFER OF PROPERTY ACT 1882, PART-II OF CHAPTER-2

TRANSFER OF PROPERTY ACT – 1882 CHAPTER-2

TRANSFER OF PROPERTY ACT-1882 CHAPTER-1