A by a settlement deed transfers property to P for life, then to S . S dies before P dies. On the death P the heir of S claims the property. Is the claim valid?
A by a settlement deed transfers property to P for life, then to S . S dies before P dies. On the death P the heir of S claims the property. Is the claim valid?
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Option A: Valid, since S interest is heritable
Option B: Invalid, since S interest is contingent
Option C: Invalid, since settlement deed is vague
Option D: None of the above
Correct Answer
Option: a
Explanation
Vested interest.—Where, on a transfer of property, an interest therein is created in favour of a person without specifying the time when it is to take effect, or in terms specifying that it is to take effect forthwith or on the happening of an event which must happen, such interest is vested, unless a contrary intention appears from the terms of the transfer. A vested interest is not defeated by the death of the transferee before he obtains possession.
Sample Mock Tests for Practice
THE NEGOTIABLE INSTRUMENTS ACT, 1881 (PAPER 01 Q. NO. 1 TO 40)
