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Question

What is a contingent interest in the context of property transfer according to the Transfer of Property Act?

A An interest dependent on the consent of the transferee Correct Answer Incorrect Answer
B An interest that becomes immediately vested upon transfer Correct Answer Incorrect Answer
C An interest created based on the fulfilment of a specified uncertain event Correct Answer Incorrect Answer
D An interest that cannot be transferred to another party Correct Answer Incorrect Answer
E An interest that automatically expires after a certain period Correct Answer Incorrect Answer

Solution

Section 21. Contingent interest: Where, on a transfer of property, an interest therein is created in favour of a person to take effect only on the happening of a specified uncertain event, or if a specified uncertain event shall not happen, such person thereby acquires a contingent interest in the property. Such interest becomes a vested interest, in the former case, on the happening of the event, in the latter, when the happening of the event becomes impossible.

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