All India Bar Examination (AIBE) 2-II Previous Year Question Papers with Answers

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72.

Which of the following is not a vested interest ?

A: On a transfer of property, an interest therein is created in favour of person specifying that it is to take effect forthwith.
B: On a transfer of property, the enjoyment of the interest is postponed.
C: On a transfer of property, prior interest in the same property is reserved or given to some other person.
D: On a transfer of property, an interest therein is created in favour of a person to take effect, only on the happening or not happening of a specified uncertain event.
E: On a transfer of property, upon the happening of certain events the interest passes to another.

The answer is: D

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Explanation

The correct option is D: "On a transfer of property, an interest therein is created in favor of a person to take effect only on the happening or not happening of a specified uncertain event."

Option D describes a contingent interest, which is an interest that only becomes vested (i.e., certain and absolute) upon the occurrence or non-occurrence of a specified uncertain event.

In contrast, the other options (A, B, C, and E) all describe vested interests, where the interest is either created immediately (A), postponed but not contingent (B), reserved for another person (C), or passes to another upon the occurrence of certain events (E).