All India Bar Examination (AIBE) 6-VI Previous Year Question Papers with Answers

The correct option is A: Does not take effect.

This is because the interest created for the benefit of the eldest son violates the rule against perpetuity under Section 14 of the Transfer of Property Act, 1882. According to this rule, no transfer of property can operate to create an interest which is to take effect after the lifetime of one or more persons living at the date of such transfer, and the minority of some person who shall be in existence at the expiration of that period, and to whom, if he attains full age, the interest created is to belong.

In this case, the interest created for the benefit of the eldest son is to take effect after the lifetime of A and his intended wife (who are living at the date of transfer) and the minority of the eldest son (who is not in existence at the expiration of that period). Therefore, this interest is too remote and void. The interest created for the benefit of the second son is also void for the same reason. The only valid interests are those created for A and his intended wife successively for their lives.