Which of the following does not constitute exception to the rule against perpetuity?

Option A: A fund is bequeathed to next seven generations

Option B: Where a property is transferred for the benefit of public

Option C: It does not apply to vested interest

Option D: A lease with a covenant for renewal

Correct Answer

Option: a

Explanation

Section 14 of the The Transfer of Property Act, 1882 (TPA) is rightly called ‘Rule against perpetuity as it limits the maximum time period beyond which property cannot be transferred…. Following are the nine exceptions to the rule against perpetuity: (1) Vested interest is not affected by the rule because once the interest are vested it cannot be bad for remoteness. (2) The rule is not applicable to land purchased or held by Corporation.(3) Gift to charities, the rule does not apply to transfer for the benefit of public for religious, pious, or charitable purposes. (4) Properties settled upon individuals for memorable Public Service. (5) The rule against perpetuity does not apply to Personal agreement, for example, agreement which do not create any interest in the property. (6) A covenant of redemption in mortgage does not affect by the rules the rule. (7) The does not apply to contacts for Perpetual renewal of lease. (8) The rule also does not apply where only charges is created which does not amount to a transfer of an interest. (9) Contract of pre-emption also not affected by rule against perpetuity. .

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