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‘X’ transfers property to his wife ‘Y’, and provides that in case she dies in his lifetime, he…

Under the second paragraph of section 27 of the Transfer of Property Act, 1882, when the transferor requires the prior disposition to fail in a specified way, the later…

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‘X’ transfers property to his wife ‘Y’, and provides that in case she dies in his lifetime, he transfers to ‘Z’ that which he had transferred to her. ‘X’ and ‘Y’ perish together under circumstances which make it impossible to prove that she died before him. Under Section 27 of the Transfer of Property Act, 1882, the disposition of property in favour of ‘Z’:

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Answer and explanation

Correct answer A

Under the second paragraph of section 27 of the Transfer of Property Act, 1882, when the transferor requires the prior disposition to fail in a specified way, the later disposition takes effect only if it fails in that way. Illustration (b) applies this to an uncertain order of deaths. Because it cannot be proved that Y died during X’s lifetime, the disposition to Z does not take effect.

Option feedback

Option A

Correct. Under the second paragraph and Illustration 2 to Section 27 of the Transfer of Property Act, 1882, because it cannot be proved that ‘Y’ died during ‘X’s lifetime, the condition for the ulterior transfer fails and the disposition in favour of ‘Z’ does not take effect.

Option B

Incorrect. When the prior transfer is made to fail only upon a specific event (Y dying in X's lifetime), the ulterior transfer to Z cannot take effect unless that exact event is proved to have occurred.

Option C

Incorrect. The operation of a conditional transfer under Section 27 is governed by the terms of the transfer and statutory rules, not by a subsequent contract among heirs.

Option D

The disposition to Z fails because Y’s death during X’s lifetime cannot be established.

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