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Which section of the Transfer of Property Act, 1882 provides for an ulterior disposition taking effect…

Section 27 provides that the ulterior disposition takes effect when the prior disposition fails. If the parties intended the ulterior disposition to operate only on failure…

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Which section of the Transfer of Property Act, 1882 provides for an ulterior disposition taking effect on failure of a prior disposition, commonly described as acceleration?

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Answer and explanation

Correct answer C

Section 27 provides that the ulterior disposition takes effect when the prior disposition fails. If the parties intended the ulterior disposition to operate only on failure in a particular manner, that intention controls. Sections 24, 25 and 30 address different rules about survivorship, conditions and the effect of an invalid ulterior disposition.

Option feedback

Option A

Section 25 concerns invalid conditions on a transfer.

Option B

Section 24 concerns survivorship where the relevant period is not specified.

Option C

Section 27 governs the ulterior disposition following failure of the prior one, subject to the transferor’s particular intention.

Option D

Section 30 preserves a prior disposition where the ulterior disposition is invalid.

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