Distinguish between 'Condition Precedent' and 'Condition Subsequent' with the help of illustrations. Show to what extent the doctrine of 'Cypres' affects the conditions.

Question: Distinguish between 'Condition Precedent' and 'Condition Subsequent' with the help of illustrations. Show to what extent the doctrine of 'Cypres' affects the conditions. [BJS 1978, 1979, 1987, 2000]

Find the answer to the mains question of Property Law only on Legal Bites. [Distinguish between 'Condition Precedent' and 'Condition Subsequent' with the help of illustrations. Show to what extent the doctrine of 'Cypres' affects the conditions.]

Answer

Condition Precedent:

In the context of property transfers, a condition precedent is a condition that must be satisfied before an interest created in the transfer takes effect. Section 25 of the Transfer of Property Act outlines the principles regarding interests that depend on a condition precedent. The section states that if the fulfilment of a condition precedent is impossible, forbidden by law, fraudulent, involves injury to others, is immoral, or opposes public policy, then the interest created on the transfer fails.

Here are key points about condition precedent:

a. Failure of Condition Precedent: If the condition precedent is impossible to fulfill or falls into any of the prohibited categories mentioned in Section 25, the interest created by the transfer will not be valid and will fail.

b. Impossibility: Fulfillment of a condition may become impossible at the time the interest is created or subsequently. If the condition becomes impossible due to an act of God, the condition becomes void, and the transfer fails. However, if the condition becomes impossible due to the fraud of a party interested in the non-fulfilment of the condition, it will be deemed as fulfilled against that party.

c. Legal Object and Public Policy: Conditions precedent are declared void if they are illegal or against public policy. Section 60(b) of the Transfer of Property Act prohibits any transfer whose object is illegal, as defined in Section 23 of the Indian Contract Act. For example, a condition that involves immoral acts, such as a gift with the condition that one should have the physical enjoyment of another person, is considered void.

d. Substantial Compliance: Section 26 of the Act deals with cases where the terms of the property transfer impose a condition that needs to be fulfilled before a person can take an interest in the property. It states that the condition will be deemed fulfilled if there has been substantial compliance with it.

e. In the case of the condition precedent, the doctrine of cypres applies and the condition precedent is fulfilled if it is subsequently complied with.

Condition Subsequent:

In contrast, a condition subsequent is a condition added to an interest in property that, once fulfilled, does not prevent the interest from taking effect. Instead, it may modify, limit, or end the interest. Section 28 of the Transfer of Property Act addresses interests created with a condition subsequent.

Key points about the condition subsequent:

a. Estate Becomes Absolute: In cases involving a subsequent condition, the estate is considered absolute from the outset, and the condition is secondary. If the condition is fulfilled, it may modify or terminate the estate, but it doesn't prevent it from taking effect initially.

b. Transfer with Condition Subsequent: Section 28 of the Act allows for the creation of interests with conditions subsequent. It states that an interest in property can be created with a condition that, upon the occurrence of a specified uncertain event, the interest shall pass to another person. If the specified event does not happen, the interest shall pass to another person. The specific rules and provisions of the Act govern such dispositions.

c. The doctrine of cypress does not apply to condition subsequent.

In summary, condition precedent and condition subsequent are important concepts in property transfers. A condition precedent is a condition that must be fulfilled for the interest to take effect and can result in the failure of the transfer if impossible or unlawful. Condition subsequent, on the other hand, allows the interest to be initially absolute, with the condition modifying or ending it later upon fulfillment. The Transfer of Property Act provides the legal framework for dealing with these conditions in property transfers.