Write notes on the following: Conditions to be kept in mind while drafting a Sale Deed.

Some of the important conditions which a draftsman should bear in mind while drafting a Sale Deed are as under: Lawful Consideration and Object: The property must be purchased as a part of legal transaction having paid the consideration as required under the provisions of the Indian Contract Act, 1872 for a valid contract. Besides, the objectives for which the property is being purchased by the buyer should be lawful, i.e., not forbidden by law, not to defeat the provisions of any law, not to be fraudulent, not to involve or impart injury to the person or property of another and should not be regarded by the court of law as immoral or opposed to public policy. Competence of Person to Transfer: For a company, the test of competence to enter into a transaction of sale or purchase is that its Board of Directors should authorise a person under the resolution passed in their meeting held in conformity with the Articles of Association and having object clause to sell or purchase immovable property under its Memorandum of Association. In case the other party is an individual who is either selling to the company or purchasing from the company any land or immovable property such individual should be considered competent to transfer if it fulfils the necessary conditions prescribed under the Indian Contract Act. Transfer of All Interest: In the Property, all interests which a transferor is capable of passing in the property as legal incident of the transfer should be explained in the document, for example, if it is transfer of land, the easements annexed thereto, the rents of profits thereof, things attached thereto etc. Absolute Transfer: The transfer should be free of any conditions or limitations which may inhibit the other party to make full use of the property in exercise of legal rights. Absolute Interest in the Property: The interest being transferred in the property should not be conditional which may restrict full enjoyment of the property by the transferee. Justification for Transfer: Cogent reasons for the transfer be given so as to establish bona fide base for the transaction and to avoid eventualities of fraud and multiple litigation therefrom. Protection of Creditors' Interest: Law protects creditors' interest in the transferred property. Enforcement of Rights Attached to Property on Valid Transfer: If a transferee is aware of such rights attached to the property and the transfer is gratuitous then the person can enforce such rights against transferee. But this could be avoided if the transferee has no notice about such rights attached to property and also has paid full consideration for the transaction. Property to be Free from Conditions: The property being transferred should be free from any rights or obligations which a third person can enforce legally against transferee for enjoying any benefits. Transfer in Good Faith and with Full Authority: Where the property is transferred by a person not the real owner, it is necessary to make such transfer valid for the transferor should have the authority to transfer and he must exercise this authority in good faith. Protection for Defective Title: Law protects the transferee who acquires the immovable property under good faith and for bona fide consideration but by any circumstance unknown to him is rendered to have defective title, Section 51 of the Transfer of Property Act, 1882 provides such protection to bona fide transferees acquiring properties in good faith. Precautions: The draftsman should know beforehand that the property under transfer is free from encumbrances and no litigation questioning such property or rights or interest connected therewith is pending in any court. To avoid fraudulent transfers, the draftsman should ensure that the title to such property has been investigated by competent advocate and he has certified the title is free from any encumbrance whatsoever. In the case of a company, it must be ensured that the Board of Directors have requisite powers under Companies Act, 2013 to sell, lease or otherwise dispose of the property of company.