question_answer

There are various situations which govern transfer of a "“moveable or immoveable property”", which may be in the form of gift or inheritance. The Sale of Goods Act, 1930 gets attracted in situations of transfer inter vivos. On the other hand, the exchange between two living individuals attracts the Transfer of Property Act, 18 82 (TP Act). Again, if one of the party involved in the exchange is dead, then succession laws come into picture. Intestate' succession laws apply if the aforementioned person dies without a Will.

While in a vice versa scenario, testamentary succession applies.

BACKGROUND

The TP Act was enacted in 1882, while the Indian Contract Act, 1872 governed this aspect in a large scale with regard to moveable property.

OBJECTIVES

The TP Act did not wish to bring in new principles but to modify existing laws and give meaning to them. Thus, the Act is to modify the property transfer laws between parties. It applies only to voluntary transfers.

DEFINITION

Transfer of property "“means an act by which a living person conveys property. In present or in future, to one or more other living persons, or to himself, and one or more other living persons and ‘to transfer property’ is perform such act”"

IMPORTANT DEFINITIONS AND SECTIONS

Vested interest [S. 19]

While "“vested in possession"” means possessing property at present, “"vested in interest”" means getting its acquisition at some time in future.

For example5 A gifts property to B which he can hold till he dies and after his death, it is to be transferred to C. Here, former’s right is vested in possession while later’'s right is vested in interest.

Transferability and heritability underlie vested interest.

Contingent interest

Contingent interest-interest to be effected on occurrence or non-occurrence of a certain unspecified event of the future.

For example, B transfers property to C till he remains a bachelor but once he marries, the property is to go to D. D’'s interest is contingent.

As per the General Clauses Act, 1897, movable property means property except immovable property.

For example, machinery fixed on a land is temporary, intellectual property right, growing grass, etc.

Immovable property

It is not denned under the TP Act. As per Section 3, immovable property excludes growing crop and grass. For example, chattel embedded in the earth.

Chance of heir apparent (Spes successionis) [S. 6]

This means an interest which has not yet arisen and may arise in future on the happening of an event. It is a mere chance where the deceased’'s estate may or may not be succeeded and thus is not a property, and its transfer is For example, D is the owner of the property and G is his son. This type of property which G hopes to get after the death of his father cannot be transferred, sold, mortgaged or relinquished

What is meant by the expression vested in possession and vested in interest?

A) Vested in possession means present ownership of property and vested in interest means ownership in future.

B) Vested in possession means permanent ownership for all times and vested in interest means ownership over the interest from the property

C) Vested in possession means future ownership and vested in interest means present ownership.

D) Vested in possession means ownership till the life time and vested in interest means ownership even after the death.