New Click here to enroll in UIICL SO Finance and Investment Course

    Register

    Question

    In a transfer of property where an interest therein is created in favour of a person to take effect only on the happening of a specified uncertain event, or if a specified uncertain event shall not happen, such person thereby acquires a____________.

    A Vested interest Correct Answer Incorrect Answer
    B Contingent interest Correct Answer Incorrect Answer
    C Conditional interest Correct Answer Incorrect Answer
    D a and b. Correct Answer Incorrect Answer

    Solution

    As per the Transfer of Property Act, 1882 S.21 . Contingent interest .mdash;Where, on a transfer of property, an interest therein is created in favour of a person to take effect only on the happening of a specified uncertain event, or if a specified uncertain event shall not happen, such person thereby acquires a contingent interest in the property. Such interest becomes a vested interest, in the former case, on the happening of the event, in the latter, when the happening of the event becomes impossible.

    Practice Next