Discus fully law relating to conditional transfers with special reference to fulfilment of condition precedent and condition subsequent.

Section 25 deals with the conditional transfer. According to this an interest created on the transfer of property and dependent upon the condition fails if fulfilment of the condition is impossible or is forbidden by law or is of such nature that if permitted it would defeat the provisions of any law or in fraudulent or involves or implies injury to the person or property of another or the Courts regard it as immoral or opposed to public policy.

Illustrations

1. A gives Rs. 500/- to B on condition that he shall marry A’s daughter C. On the date of transfer C was dead. The transfer is. void.

2. A transfer Rs. 500/- to B on condition that he shall murder C. The transfer is void.

3. A transfer Rs. 500/- to his niece C, if she will desert her husband. The transfer is void.

A transfer of property with certain condition is called conditional transfer. Such conditions are of the following kinds :

1. Condition precedent (Section 26)

2. Condition subsequent (Section 29)

3. Collateral condition.

(1) what is Condition precedent. Section 26 of transfer of property act

It means where the condition transfer of property is to be fulfilled prior a person aquires interest in the property. There may be a condition attached on whose performance the contract as a whole comes into operation. For example, A contracts to sell his house to B if B marries C. This is case of contract with the contract precedent and its effect is that until B marries C, obligation to sell the does not arise. [Section 26 of T.P. Act.]

2. what is Condition Subsequent. Section 29 of transfer of property act

There may be a condition that on the happening or non-happening of the certain event of the contract will be discharged. For example A contract his Farm to B until he dies. This is a case of conditional subsequent and on B’s death, the library will revert to A.

3. What is collateral condition

If condition is required to be fulfilled simultaneously with the transfer. Its to be performed side by side the operation of transfer. Example- A agrees to let his farm to B so long as B lives in the same house with A. its a case of collateral contract.