CHAPTER II OF TRANSFERS OF PROPERTY BY ACT OF PARTIES · (A) Transfer of Property, whether moveable or immoveable

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.

Exception.—Where, under a transfer of property, a person becomes entitled to an interest therein upon attaining a particular age, and the transferor also gives to him absolutely the income to arise from such interest before he reaches that age, or directs the income or so much thereof as may be necessary to be applied for his benefit, such interest is not contingent.

Questions on this section

2 questions in 10 of our papers cite Section 21. Try these from the free papers:

1. A transfers a house to B, providing that B shall become entitled to the house on attaining the age of 25 years, and directing that until then the whole rent of the house shall be paid to B absolutely. B is 15 years old at the date of the transfer. Under the Transfer of Property Act, 1882, B's interest in the house is:
2. Under Section 21 of the Transfer of Property Act, 1882, where an interest is to take effect only if a specified uncertain event does not happen, the contingent interest becomes a vested interest:

Practise questions on Transfer of Property Act