Under Section 20 of the Transfer of Property Act, 1882, when does an interest validly created for an…
Under Section 20 of the Transfer of Property Act, 1882, where on a transfer of property an interest therein is created for the benefit of a person not then living (subject…
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Under Section 20 of the Transfer of Property Act, 1882, when does an interest validly created for an unborn person vest if the transfer expresses no contrary intention?
Answer and explanation
Correct answer A
Under Section 20 of the Transfer of Property Act, 1882, where on a transfer of property an interest therein is created for the benefit of a person not then living (subject to Section 13), he acquires upon his birth, unless a contrary intention appears from the terms of the transfer, a vested interest, although he may not be entitled to the enjoyment thereof immediately on his birth.
Option feedback
Option A
Correct. Under Section 20 of the Transfer of Property Act, 1882, where on a transfer of property an interest therein is created for the benefit of a person not then living, he acquires a vested interest upon his birth, unless a contrary intention appears from the terms of the transfer.
Option B
Incorrect. Section 20 of the Transfer of Property Act, 1882 does not prescribe a waiting period of 7 days after birth; the interest vests immediately upon birth.
Option C
Incorrect. Section 20 of the Transfer of Property Act, 1882 does not prescribe a period of 12 days after birth.
Option D
Incorrect. Attaining 18 years (majority) is not required for the acquisition of a vested interest under Section 20, even though enjoyment may be postponed.
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