Transfer of Property Act Section 31 — Condition that transfer shall cease to have effect in case specified uncertain event happens or does not happen

CHAPTER I PRELIMINARY

General

Summary

A property transfer can include a condition that the interest given will end if a specific uncertain event either happens or does not happen. For example, a person could receive a life interest in a farm on the condition that the interest ends if they cut down a certain wood, or if they fail to travel to England within three years. If that stated event occurs or fails to occur, the interest stops.

Official Text

Subject to the provisions of section 12, on a transfer of property an interest therein may be created with the condition superadded that it shall cease to exist in case a specified uncertain event shall happen, or in case a specified uncertain event shall not happen. Illustrations

(a) A transfers a farm to B for his life, with a proviso that, in case B cuts down a certain wood, the transfer shall cease to have any effect. B cuts down the wood. He loses his life-interest in the farm.

(b) A transfers a farm to B, provided that, if B shall not go to England within three years after the date of the transfer, his interest in the farm shall cease. B does not go to England within the term prescribed. His interest in the farm ceases.