Important terms related to the Law relating to Transfer of Property Act

CS Executive – Industrial, Labour & General Law  : Important terms related to the Law relating to Transfer of Property Act

CS Executive online classes : Vested and Contingent Interest

Vested Interest means an interest which is created in favor of a person – without specifying the time when it is to take effect, or specifying it is to take effect on an immediate basis, or on the happening of an event.

Contingent Interest means an interest created in favor of a person – to take effect only on the happening or not happening of a specified uncertain event, which may or may not happen.

In simple terms, as per the Transfer of Property Act; when an interest is vested, the transfer is complete but when the interest is contingent, the transfer depends on a precedent condition i.e. when the condition s fulfilled the transfer takes place and the interest becomes vested.

Vested interest is not defeated by the death of transferee before he obtains possession whereas the Contingent interest is defeated by the death of transferee before he obtains possession.

In vested interest, the party has present/immediate right even when the enjoyment is postponed whereas in the contingent interest there is merely a promise for giving such a right i.e. there is no present right of enjoyment.

The difference between these two seems simple but in practical life, it is not easy to differentiate between these two. The difficulty is that the vested interest is not, necessarily, in possession. An interest may be vested, but not in possession.

The proper explanation of the Labour Turnover is available for CS PREPARATION in Online classes CS Executive.

Learn complete Important terms related to the Law relating to Transfer of Property Act