You are on page 1of 2

Conditional Transfers: Conditional Transfers of the Transfer of the Property Act explains under the Section 25 to 34.

Every Person competent to contract can transfer a property either absolutely or conditionally. Such conditions may be either "Conditions Precedent or Condition Subsequent". In Condition Precedent, conditions must be fulfilled before a person can acquire an interest in a property. In Condition Subsequent, conditions must be performed after the transfer has taken place. Eg:- "A" transfers a house to "B" on the condition that "B" shall marry "C". This is a Condition Precedent. But "A" transfers the house to "B" with a condition that "B" shall marry "C" within two years from the of the transfer. This is a Condition Subsequent. Condition Precedent : According to the Section 25 and 26 defines the "Condition Precedent" in the Transfer of the Property. The Condition Precedent must not be impossible of performance. It must be lawful and not forbidden by law. The condition Precedent must obey the provisions of all laws. It should not fraudulent and or cause injury to the person or property of another person and or should not be immoral or opposed to public policy. Condition Subsequent : According to the Section 27 to 34 of the Transfer of the Property Act defines the "Condition Subsequent". Condition Subsequent has different types of Transfers. They are:1. Subsequent Transfers 2. Conditional Limitation 3. Fulfillment of Condition Subsequent 4. Prior disposition not affected by invalidity of ulterior disposition 5. Condition that transfer to effect in specified uncertain events 6. Condition invalid and 7. Conditional on Performance. 1. Subsequent Transfers : Section 27 of the Act, deals with second transfer on failure of prior valid transfer. The rule is that if the prior interest fails, then the subsequent interests in the property takes effect, even though the first transfer have failed in a manner not as though of by the transferor. Eg:"A" transfers Rs.500 to "B" on condition that he shall execute a certain lease within three months after "A"'s death, and if he neglects to do so, the to "C". "B" dies in "A"'s lifetime. The transfer in favour of "C" takes effect. 2. Conditional Limitation : Section 28 of the Act, speaks about "conditional limitation". An interest in a property transferred may be created in favour of any person with a condition that in case a specified uncertain event shall not happen, such not happen, such interest shall pass to another person.

Eg:"A" transfers Rs.5000 to "B" with the condition that "B" must go to USA within three years from the date of the transfer and in case he does not go within the said period, the property will go to "C". Now in case, "B" does not go to USA, then "C" gets Rs.5000. 3.Fullfilment of Condition Subsequent : Section 29 of the Act, deals with the "Fulfillment of Condition Subsequent". An ulterior transfer to the second party as contemplated in the preceding section cannot take effect unless the condition by the first transferee is strictly fulfilled. 4. Prior disposition not affected by invalidity of ulterior disposition : Section 30 of the Act, If the ulterior (Subsequent) disposition is not valid, the prior disposition is not affected by the ulterior (subsequent) invalid disposition. Eg:"X" transfers a farm to "Y" for her life, and if she does not desert her husband to "Z". "Y" is entitled to the farm during her life as if no condition had been inserted. 5. Condition that transfer shall cease to have effect in case specified uncertain event happens or does not happen: Section 31 of the Act, On a transfer of property an interest therein may be created with the condition that it shall cease to exist in case a specified uncertain event shall happen, or in case a specified uncertain event shall not happen. 6. Such Conditions must not be invalid : Section 32 of the Act, If a condition that an interest shall cease to exist should be valid, then it is necessary that the event to specify must be lawful. Eg:- "A" transfers to "B" an interest in a property with the condition that "B" shall goes to Pakistan within 3 years. "B" cannot go to Pakistan within 3 years because it is an alien nation for India. Now the condition is invalid and the interest passes on to "B". 7. Transfer conditional on performance of act, no time being specified for performance : Section 33 of the Act, 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, then the condition is broken when he renders impossible, permanently or for an indefinite period, the performance of the act. Time for Performance Specified : Section 34 of the Act, deals with the "Time for Performance Specified". This section lays down that if the performance of a condition whether subsequent or precedent is prevented by a person interested in its non-fulfillment, the delay is excused and the condition is discharged. This section is based on the principle that no man is allowed to take advantage of his wrong. Eg:- "A" transfers property to "B" with a condition that if he does not go to England within a year, it will pass on to "C". If "C", by playing a fraud, prevents "B" from performing the condition, the delay in such performance is excused. This article very useful to know the about the Conditional Transfer of the Transfer of the Property Act.

You might also like