Section 32 of The Transfer of Property Act, 1882
In order that a condition that an interest shall cease to exist may be valid, it is necessary that the event to which it relates be one which could legally constitute the condition of the creation of an interest.
Summary
- A condition under which a property interest will cease to exist must be legally valid to have any effect.
- The event that triggers the end of the interest must be one that could legally constitute a condition for creating an interest in the first place.
- If the event is illegal, impossible, or contrary to public policy, the condition to end the interest is void, meaning the interest will not terminate.
- This rule ensures consistency under the law, preventing a transfer from being ended by conditions that would be unlawful to set at the beginning.
Practical examples
FAQ
1. What does Section 32 of the Transfer of Property Act, 1882 say about conditions that end a property interest?
Section 32 of the Transfer of Property Act, 1882 states that for a condition that ends an interest to be valid, the terminating event must be something that could legally be used as a condition to create an interest.
2. Under the Transfer of Property Act, 1882, what happens if a property interest is set to end upon an impossible event?
Under Section 32 of the Transfer of Property Act, 1882, if a condition is based on an impossible event, the condition itself is invalid, meaning the property interest continues to exist and will not cease because of that event.
3. How does Section 32 of the Transfer of Property Act, 1882 handle illegal acts used as terminating conditions?
Under Section 32 of the Transfer of Property Act, 1882, any condition that terminates a property interest if a person fails to perform an illegal act is void, as illegal acts can never legally form the basis of a property condition.
Test yourself
Q1.Under Section 32 of The Transfer of Property Act, 1882, what is required for a condition that an interest shall cease to exist to be legally valid?
Q2.Under Section 32 of The Transfer of Property Act, 1882, if a farm is transferred to a person with a condition that their interest will cease if they do not marry a person who is already dead, what is the status of that condition?
Q3.Under Section 32 of The Transfer of Property Act, 1882, if a condition that terminates a property interest is found to be legally invalid, what is the effect on the primary transfer of property?
Q4.Under Section 32 of The Transfer of Property Act, 1882, which of the following events can validly be used as a condition to end a transferee's interest in an estate?