When does the conditional transfer fail?
Section 23 provides that, where on transfer of property, an interest therein is to accrue to a spectified person, if a specified uncertain event shall happen and, no time is mentioned for the occurrence of such event, the interest fails, unless such event happens before, or at the time of cessation of the intermediate or precedent interest.
Section 25 provides that an interest, created on the 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 the public policy.
- A lets a farm to B on the condition that he shall walk 100 miles in an hour. This lease is void because the fulfillment of the condition is impossible.
- A transfer Rs. 500 to B on condition that he shall murder C. The transfer is void because the condition in this case is forbidden by law.
- A transfer Rs. 500 to his niece C if she will desert her husband. The transfer is void because the transfer in this case, if permitted, would imply injury to the person or property of another.
How should a condition precedent be fulfilled?
Whenever there is a condition precedent to the transfer of interest, according to which a transfer is to take effect on fulfillment of a condition, mentioned, then, according to section 26 of the Act, such condition is deemed to have been fulfilled when it is substantially complied with.
A transfers Rs.5000 to B on 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.
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