Analysis On Vested And Contingent Interest Under The Transfer Of Property Act, 1887

Amisha Bhandari, Delhi Metropolitan Education, GGSIPU

Introduction

Transfer and exchange of property is extremely normal in the everyday existence of a person. There are different laws under the Indian Law connected with property matters. Yet, initially, what do we mean by the term property? Property might be characterized as any physical or virtual substance claimed by an individual or a gathering of people who hold the possession and privileges on the property. Property can be moved or sold starting with one individual then on to the next by different means as indicated by the laws in India. The Transfer of Property Act, 1882 (ToPA) manages the exchange of properties between one individual to another.

As per The Transfer of Property Act, 1882, the parties involve for the agreement of move of property are Transferor and Transferee. The transferor is somebody who moves his property to the other person while the transferee is an individual who gets the property. Rules of the Indian Contract Act, 1872 are appropriate in the exchange of property.

Vested Interest and Contingent Interest are two key interests that are considered while transferring a property. They are clarified under The Transfer of Property Act, 1882 alongside the fundamental circumstances connected with the property. Vested interest is referenced in Section 19 and Contingent Interest is referenced in Section 21 of the Transfer of Property Act, 1882. When a condition exists for the occurrence of a specific event, vested interest is generated whereas, contingent interest only takes effect after the condition is met; if the requirement isn't met, the transfer will be voided.