Question

Which of the following is not a vested interest:

• A. 'A' stipulates that title in a property shall pass to 'C' on his death.
• B. 'A' stipulates that title in a property shall pass to 'C' on the death of 'B'
• C. 'A' stipulates that title in a property shall pass to 'C' if he marries ʻB'
• D. 'A' stipulates that title in a property shall pass to 'C' after ten years.

Hint:

Ask yourself: Is the event that triggers the transfer certain to happen? If yes (like death or a specific date), it's a vested interest. If no (like a marriage or winning a race), it's a contingent interest.

Answer 1

The Correct Option is C

The Transfer of Property Act, 1882, distinguishes between vested and contingent interests. \[\begin{array}{rl} \bullet & \text{**Vested Interest (S. 19):** An interest is vested when it is not dependent on an uncertain event. The enjoyment may be postponed, but the title is already conferred. The event on which it depends is a certain event, like death or the passage of time.} \\ \bullet & \text{**Contingent Interest (S. 21):** An interest is contingent when it depends on the happening or not happening of a specified uncertain event.} \\ \end{array}\] In options (A), (B), and (D), the transfer depends on events that are certain to happen (death, passage of time). In option (C), the transfer depends on 'C' marrying 'B', which is an uncertain event—it may or may not happen. Therefore, this creates a contingent interest, not a vested one.