Doctrine of Acceleration

Introduction

In property transfers, a person may first give property to one person and then provide for another person to receive it later. Sometimes, the first transfer fails. In such cases, the law allows the later transfer to take effect earlier than expected.

Meaning / Definition

The Doctrine of Acceleration (Section 27) means that if a prior transfer (earlier interest) fails, the subsequent transfer (later interest) takes effect immediately, even if the failure does not happen in the exact way expected by the transferor (person making the transfer).

However, if the transfer clearly requires failure in a specific manner, then the later transfer will take effect only if that specific condition is met.

Modes or Types

General Rule of Acceleration

If the prior interest fails for any reason, the subsequent interest will take effect immediately.

Exception (Specific Mode of Failure Required)

If the transfer states that the prior interest must fail in a particular way, then the later interest will take effect only if that exact situation happens.

Important Case Law

Lull v Jones

A transferred property to B for life and then to B’s children. The transfer to B failed because B was an attesting witness (a person who signs to confirm the document).
Held: The transfer to B failed, but the transfer to the children took effect immediately.

Avelyn v Ward

A transferred ₹5,000 to B on condition that B should execute (carry out) a lease within 3 months after A’s death, failing which the amount would go to C.
B died during A’s lifetime.
Held: The transfer to C took effect due to failure of B’s interest.

Underwood v Wing

A transferred property to his wife W, and if she died during his lifetime, then to B.
Both A and W died in an accident, and it was not proved who died first.
Held: Since it was not proved that W died before A, the transfer to B did not take effect.

Practical Example

A transfers property to his children who survive him, and if they die before him, then to B.

A dies without any children.

Since the prior interest fails, the property goes to B immediately under the doctrine of acceleration.

Summary

• Applies when there are two transfers in the same property
• If the first transfer fails, the second transfer takes effect early
• Failure need not be in the expected manner (general rule)
• If a specific mode of failure is required, it must be strictly followed
• Ensures property does not remain without an owner