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Difference between vested interest and contingent interest

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Uma asked over 2 years ago

Difference between vested interest and contingent interest

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3 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 narahari answered over 2 years ago

A contingent interest is created in favour of a person – to take effect only on the happening or not happening of a specified uncertain event, which may or may not happen. It is only a chance of becoming an owner. However, it is different from spies successions. It is solely dependant upon the fulfilment of the condition (after which it becomes vested interest), so that if the condition is not fulfiled, the interest may fall through. Thus, the owner’s title is as yet imperfect, but is capable of becoming perfect.

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Data?1494421730 rohit awasthi answered over 2 years ago

Hello Uma **Vested interest** A vested interest is created in favour of a person – without specifying the time when it is to take effect, or specifying that it is to take effect forthwith, or on the happening of a certain event. It is ownership. It does not depend upon the fulfilment of any condition. It creates an immediate right, though the enjoyment may be postponed to a future date. Thus, owner’s title is already perfect. It is not defeated by death of transferee before he obtains possession. It is both transferable as well as heritable. If the transferee of a vested interest dies before actual enjoyment, it passes on to his heirs. Example: A makes a gift to B of Rs. 100 to be paid to him on the death of C. B gets a vested interest, as the event, namely, C’s death is certain **Contingent interest** A contingent interest is created in favour of a person – to take effect only on the happening or not happening of a specified uncertain event, which may or may not happen. It is only a chance of becoming an owner. However, it is different from spies successions. It is solely dependant upon the fulfilment of the condition (after which it becomes vested interest), so that if the condition is not fulfiled, the interest may fall through. Thus, the owner’s title is as yet imperfect, but is capable of becoming perfect. Whether it passes on the death of the transferee or not depends on the nature of the contingency. It is transferable. Whether it is heritable or not depends on the nature of the contingency. If the transferee dies before obtaining possession, the contingent interest fails, and does not pass on to his heirs. Example: An estate is transferred to A if he shall pay Rs. 500 to B. A’s interest is contingent until he paid Rs. 500 to B. Thanks

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Seema jain commented 8 months ago

may u also send conclusion of vested and contingeny interest nd recent cases

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 lochan answered over 2 years ago

**VESTED INTEREST CONTINGENT INTEREST** When interest is not subject to any condition it is vested interest. contingent interest is after the condition is satisfied When interest is vested the transfer is complete or absolute. contingent interest is dependent on fulfillment of condition. vested interest takes place from the date of transfer. contingent interest is conditioned by happening or non happening of future event. vested interest cannot be defeated by death of transferee Contingent interest fails in case of death of transferee before the fulfillment of any condition. thanks

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