Deonath, the testator, gave his estate to his son, Rangnath, with a condition that if he wanted to sell the property, he would first give an option to testator's wife, Vishnupriya, who should be able to buy it for ₹ 3 la
CS Executive · Economic, Business and Commercial Laws · PYQS · December 2024
Deonath, the testator, gave his estate to his son, Rangnath, with a condition that if he wanted to sell the property, he would first give an option to testator's wife, Vishnupriya, who should be able to buy it for ₹ 3 lakhs. When testator died the market value of property was ₹ 15 lakhs. Examine the validity of this transfer, under the Transfer of Property Act, 1882.
Answer & Explanation:
Section 10 of the Transfer of Property Act, 1882 states that when property is transferred, the transferee should not be restrained absolutely from alienating the property. One may give property to another subject to a condition, but the condition should not be one which absolutely prevents the transferee from alienating the property. Suppose, B gives property to A and his heirs adding a condition that if the property is alienated it should revert to B. This condition is invalid and the transferee can ignore such condition. The transfer takes effect and is valid, and the condition not to alienate the property is void. In the given case the testator gave his estate to his son and added a condition that if his son wanted to sell the property, he should first give an option to the testator's wife who should be able to buy for ₹ 3 lakhs. The market value of the property when the testator died was ₹ 15 lakhs. The condition which compelled the son to sell the property is void. (Rasher vs. Rasher, (1884) 26, Ch. D. 801).
Topics: Business Laws
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