Void Transfers

Introduction

Property can be transferred with conditions attached to it. These conditions may decide whether the transfer will take effect or continue. However, not all conditions are valid. If a condition is improper or unlawful, the transfer may become void (invalid).

Meaning / Definition

A void transfer is a transfer of property that becomes invalid because the condition attached to it is not legally acceptable. This usually happens when the condition is impossible, unlawful, or against public interest.

Modes or Types

Condition Precedent (condition to be fulfilled before transfer takes effect)

A condition precedent is a condition that must be fulfilled before the transfer becomes effective. If such a condition is invalid, the transfer becomes void.

Impossible Condition

If the condition cannot be performed in reality, the transfer is void.

Example: A transfers property to B on the condition that B touches the sky with his finger. This is impossible, so the transfer is void.

Condition Forbidden by Law

If the condition requires doing something that law does not allow, it is void.

Condition Defeating Law (goes against the law)

If the condition, if allowed, would defeat (break or bypass) the provisions of any law, it is void.

Fraudulent Condition (involving cheating or dishonesty)

If the condition involves fraud (cheating), it is void.

Condition Causing Injury (harm) to Person or Property

If the condition requires causing harm to another person or their property, it is void.

Immoral or Opposed to Public Policy

If the condition is immoral (against accepted moral standards) or against public policy (against the welfare of society), it is void.

Practical Example

A transfers property to B on the condition that B commits an illegal act.

Since the condition is forbidden by law, the transfer becomes void.

Summary

• Conditional transfers are allowed under law
• A condition precedent must be valid for the transfer to take effect
• Impossible conditions make the transfer void
• Conditions forbidden by law or defeating law are void
• Fraudulent or harmful conditions are void
• Immoral or anti-social (against public policy) conditions are void