Conditional transfer of property
An interest created on a transfer of property and dependent upon a condition fails if the fulfilment of the condition is impossible, or is forbidden by law, or is of such a nature that, if permitted, it would defeat the provisions of any law, or is fraudulent, or involves or implies injury to the person or property of another, or the court regards it as immoral or opposed to public policy.
Example:
(a) Mr Ram lets a farm to Shyam on condition that he shall run a 100 miles in an hour. The lease is void. (b) Ram gives Rs. 50000 to Shyam on condition that he shall marry Ram's daughter Jyoti. At the date of the transfer Jyoti was dead. The transfer is void.
(c) Ram transfers Rs. 50000 to Shyam on condition that she shall murder Gyan. The transfer is void.
(d) Ram transfers Rs. 50000 to his niece Jyoti, if she will desert her husband. The transfer is void.
Fulfilment of condition precedent
Where the terms of a transfer of property impose a condition to be fulfilled before a person can take an interest in the property, the condition shall be deemed to have been fulfilled if it has been substantially complied with.
Example:
(a) Ram transfers Rs. 50000 to Shyam on condition that he shall marry with the consent of Jyoti, Radha and Sita. Sita dies. Shyam marries with the consent of Radha and Jyoti. Shyam is deemed to have fulfilled the condition.
(b) Ram transfers Rs. 50000 to Shyam on condition that he shall marry with the consent of Jyoti, Radha and Sita. Shyam marries without the consent of Jyoti, Radha and Sita, but obtains their consent after the marriage. Shyam has not fulfilled the condition.
