1. Where a subsequent condition is imposed on the transfer, the transfer shall be cancelled by the fulfilment or non-fulfilment of such a condition. Figure – A knew that the railway company would not award him a contract. He advanced money to B so that he could apply for the contract on A`s behalf and, once the contract was awarded, A acted as the real contractor. In this case, the agreement is void because the condition imposed on the transfer of the money was fraudulent in order to defraud the railway company. Any transfer of assets that creates an interest created by a seller and depends on the fulfilment or non-fulfilment of a condition results in a conditional transfer. Paragraph 25 sets out the following six categories of conditions that should not be imposed when creating a right in the transfer of property because it invalidates the transfer, namely: 2. The transfer of ownership is immediate and the interest in these assets passes to the purchaser, unless the following condition is met or not. 1. The condition imposed must be fulfilled before the actual transfer takes place. It should be borne in mind that if these conditions are conditions precedent, they invalidate the transfer, since the conditions themselves are null and void. However, if the condition is a subsequent condition, the assignment may continue to apply even if the condition is null and void.
In Ram Sarup v. Bela,[7] it has been stated that a gift to which an immoral condition is attached is a good gift, but that the condition is null and void. In Ghumna v. Ramchandra [8], the Court ruled that the transfer was void in view of future immoral relations. A agrees to transfer his property to B if B murders C. The condition of B`s murder is prohibited by law, therefore the transfer of ownership is null and void. Article 10 – A transfers his house X to B for consideration and imposes the condition that B does not sell it to anyone, but retains possession of the land for himself. B agrees to comply with the situation and pays something in return. Once the appraiser is in B, he sells it to C. A brought an action for possession of the property on the ground that B had breached a contractual condition. in the present case, A`s action is dismissed, since B`s condition of recycling is absolutely excluded from the transfer of ownership, even if the date on which the interest is transferred to B is null and void.
B has the right to ignore it as if it did not exist on paper. It is contained in section 29 of the Transfer of Property Act 1882. Any condition that must be met after the transfer of an asset is called a condition retrospectively. This condition must be strictly adhered to and the transfer will only take place once this condition has been met. For example, A transfers any “X” property to B on the condition that he scores more than 75% on his university exams. If B does not reach 75 percentage points, the transfer breaks down and the property is reset to A. It makes it possible to analyse the conditions that may or may not be imposed on the interest created in favour of the purchaser. Section 25 acts as guardian of conditional transfer because it sets out conditions that, if imposed, would invalidate the transfer.
Because of their complexity, the provisions on conditional transfer should be interpreted with the utmost precision in order to take into account the interests of both the assignor and the assignee. Article 29 of the Act sets out the principle of defeasance, according to which the interest of one person ends with a transfer, thus transferring it to another person. If an interest in a particular person arises from the transfer of ownership, that person can then be sold in the event of an uncertain event in the estate and transferred to another person. Figure – A transfers ownership to B on condition that B obtains employment with a reputable firm. The condition of A for B to obtain employment is called conditional transfer. (b) If the assignor clearly indicates its intention that the previous transfer fails in some way for the onward transfer to take place, the onward transfer will not be accelerated unless the previous transfer fails in that particular manner. A condition that the transfer ceases to have effect if a certain uncertain event occurs or does not occur. Figure – A transfers a business to B with the following condition that if B goes to England within 3 years of the date of the transfer, its ownership in a company will cease.
B went to England within 2 years of such a transfer. In such a case, his interest in the operation ceases because he has not fulfilled the condition after the transfer of ownership. A transfers property to B on condition that B marries his daughter C. Such a transfer of assets is a conditional transfer on the basis of the condition imposed by A B to marry his daughter C. (iv) conditions involving or involving harm to the person and property of others; Section 27 of the Act is based on the doctrine of acceleration. It provides for a situation where the onward interest/transfer becomes effective when two shares in the same transaction are created and the previous shareholding/transfer fails for a reason not envisaged or reasonably foreseen by the transferor. Section 23- A transfers his house to B for life, then to C when he goes to London. C did not go to London until a year after B`s death.
In such a situation, C`s interest in the house will fail. But we must see what caused the delay of the condition. If the fulfillment of the specified condition, which may be retrospective or suspensive, is prevented by a person interested in its non-compliance, the delay will be tolerated and the condition will be fulfilled. Figure – A gives B his property on condition that B marries with C`s consent, D and E. B only marries with C and D`s consent, because E died prematurely. In this case, ownership is transferred to B, since he fulfils the condition imposed by A. There is an exception to this article that, if it is a transfer situation in the form of a gift, the doctrine of acceleration does not apply, unless the first transfer fails only in a certain specific way. For a conditional transfer type to be valid, the condition imposed must not be: there are three specific types of conditions imposed in a transfer of ownership, and there are a few other types. All these conditions must also satisfy all the requirements of a condition, as mentioned in section 25 of the Transfer of Ownership Act 1882. Section 34 of the Transfer of Ownership Act 1882 sets out any transfer where, under a condition, a period is specified for the occurrence or non-occurrence of an act and, if such a condition is not met, the interest in the property must go to another person. If the condition is fulfilled within the prescribed period, the transfer remains effective and, otherwise, the transfer loses its effect. For example, M agrees to transfer land “X” to N on condition that he travels to England within 2 months.
If N goes to England within the prescribed time, the transfer will be made and N will receive ownership, but if he does not do so within the 2 months specified by M, the transfer will lose its effect. According to section 27, if a previous transfer depends on a condition and the previous transfer does not result in non-compliance with the condition, ownership must be transferred to another person. In such a case, the onward transfer will be accelerated by the failure of the previous transfer. In other words, if an interest in the transfer of ownership is created in favour of one person and in the same transaction a receiver of the same interest is created in favour of another person, if the previous transfer fails, the depreciation occurs after its failure. [viii] Transfer means an act by which property is transferred from one or more living persons to another. Such a transfer may take place now or in the future. A person may transfer his property to one or more living persons or to himself and to one or more living persons. Transfer of ownership may take the form of a sale, exchange, gift, mortgage, lease, enforceable claim or encumbrance under the Transfer of Ownership Act 1882. Section 5 of the Act defines the concept of transfer. [i] 3. In the event that the subsequent condition is impossible or illegal, the condition is ignored and the interest created by the transfer to the buyer remains due to him. X transfers his house to Y on condition that he transfers his field to Z.