TRANSFER OF PROPERTY ACT, 1882

In India, the transfer of immovable property “inter vivos” (between living persons) is
governed by the T. P. Act, 1882. Certain provisions equally apply to movable property
also. Eg Section 122 dealing with gifts. (99% immovable property +1% movable property
= provisions of T.P. Act). For the sale of movables, Sale of Goods Act 1930 applies. The
first portion of the TP Act –Sections 1 to 53A incorporates the general rules or the basic
principles of transfer and contains various doctrines like acceleration, accumulation,
election etc. The rest deals with specific transfers like sale, gift, mortgage, lease, exchange
etc

What is immovable property?

The Act gives a negative definition excluding (1) standing timber (2) growing crops; and
(3) grass. Hence one has to find out a precise definition from other statutes like General
Clauses Act 1897, Registration Act etc. As per the definition in such statutes, the term
includes:

• Land
• Benefits arising out of land (eg:- right to catch fish from pond, to tap toddy, rubber
sheet
• Things attached to earth-structures (eg:- Buildings)
• Things which are permanently attached to the buildings for the permanent
beneficial enjoyment- fixtures (eg:- Doors, windows, fan etc)

To conclude one can say that the term includes the above four items but does not include
standing timber, growing crops and grass. As per English law, “whatever is planted or
built in the soil belongs to soil.”(”Quic quid plantator solo solo cedit”)- This maxim is
having no application in India.
Marshall v. Green: (Agreement was to cut and sell certain trees for furniture. The
transfer was held to be that relating to movable property and hence not governed by T.
P. Act)

Doctrine of Fixtures
When a chattel or movable property is attached to soil, it becomes a fixture. In order to
find out whether a movable has become a fixture, the following must be considered:

➢ Mode of annexation:- If the thing rest by its own weight, presumption is that it is
movable. If it is permanently fixed by external means, it becomes immovable.
➢ Purpose of annexation:- If it is attached for permanent beneficial enjoyment, it
becomes immovable.

Doctrine of transferability of property (Section 6)

The general rule is that “property of any kind can be transferred.” But Section 6 of the TP
Act enumerates certain properties which cannot be transferred. They are:

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 ➢ Spes successionis:- (“a mere chance of succession”) “a mere chance of an heir
apparent to succeed to the property of a deceased person.” Illustration: - On the
death of the father the sole son will inherit the property. The son is an heir
apparent and hence he cannot transfer such property during the lifetime of father.
➢ Right to maintenance: - The right to future maintenance cannot be transferred.
➢ Right to sue
➢ Public office, salaries of public officers
➢ Easement right cannot be transferred separately, detached from dominant
heritage.
➢ Air and similar property.

Doctrine of attestation
It means ‘‘witnessing the execution of a document and signing as witness’’. The aim is to
ensure that the deed has been executed voluntarily without fraud, force etc. In Shammu
Patter v. Abdul Khader, the court held that for a valid attestation, the attesting witness
must have actually seen the execution. But after 1926 Amendment, attestation on the
acknowledgement of execution by the executant is also valid.

Essentials of attestation:

1. At least two witnesses

2. Only competent person can attest (major and sound mind)
3. Party to the deed cannot be a witness
4. No particular format is prescribed.
5. Attestation only after the completion of execution
6. Witness must sign in the presence of executant
7. Attester must have seen execution (Shammu Patter’s law) or received
acknowledgement from the executant (1926 Amendment Act)

Difference between English Law and Indian Law

English Law Indian Law

1. Shammu Patter’s law: witnesses must 1. Shammu Patter’s law or 1926
have actually seen the execution Amendment Act.
2. Both witnesses must be present at the 2. Not so
same time
3. Stringent provision to prevent, fraud, 3. No so; diluted provision.
force etc.

Doctrine of constructive notice

“Notice” implies ‘‘knowledge of the existence of a fact or state of affairs.’’ Notice can be
either:-
1. Actual notice or express notice:-It denotes a person’s direct knowledge of a fact. It
is a notice which a person gets after having actually read the contents of a document

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 2. Constructive notice or implied notice: - A notice attributed by law to a person in
certain cases (eg) signing a deed without reading it. Law presumes that he had read
it. In the following circumstances, law attributes constructive notice: (i) Notice to
agent- principal is deemed to have notice, if the agent knows it. (ii) Registration: -
after registration of a document, the parties cannot say that they are unaware of the
contents. (iii) Actual possessions of document:- A document is in the possession of
‘A’ for 10 years. He is prevented from saying that he has not read it. (iv) Gross
negligence

Rule against inalienability (Section 10)

Any condition imposed by the transferor absolutely preventing the transferee from
alienating the transferred property, is void.Illustration:- A transferred his property to B
with a condition that, if B wishes to transfer it, B should give the property to A’s wife only
and that too for a price of ¼ of the actual value. This condition is void and hence B can
transfer the property to any person. (Manobai v. Mahadio; Attwatter v. Attwatter)

Exceptions:
➢ Partial Restraint can be imposed. (eg) Direction that it can be transferred only to
the family members provided the family consist of large number of members.
➢ In a lease, the lesser can prevent the lessee from subletting the property.
➢ Christian women can be prevented from alienating, her property during her
marriage.

Restriction imposed by the transferor on the mode of enjoyment of the transferred

property, is void (Section 11)

Illustration: A sells property to B saying not to dig well, plant trees etc. A sells his field to
B with a condition that B will cultivate wheat instead of paddy. These restrictions
imposed by the transferor are void because the transferee has the absolute right over the
transferred property.
Exception: - Rule in Tulk v. Moxhay: When the transferor retains a portion of the property
and transfers the rest to the transferee, then for the beneficial enjoyment of the property
retained by the transferor, conditions can be imposed. A gives his property to B. A can
restrict B not to obstruct his right to enjoy the property (light& air). B sells it to C. C is
also bound by the restriction imposed with regard to the mode of enjoyment. Eg: - Not to
construct building so as to obstruct light and air circulation of the transferor’s house.
Thus a subsequent transferee is also bound by this condition, because it is regarded as
“covenant running with land.”
Condition which makes an interest re-vesting on insolvency, is void (Section 12)
Illustration: - A transfers property to B with a condition that if B becomes insolvent, the
property transferred will come back to A. The condition is void. The provision is intended
to protect the creditors of the transferee.

TRANSFER TO UNBORN

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 Rule against double possibilities (Section 13)
It deals with transfer to an unborn person. As per section 13, if you are giving property
to unborn, you must give the whole of the property you are having.

PRIOR INTEREST

UNBORN
LIVING PERSON
Whole of the remaining interest

(a) Transfer cannot be made directly to the unborn.

(b) Prior interest must be given to a living person.
(c) Unborn should be given the whole of the remaining interest of the transferor.
(d) The unborn should be enabled to get the property on attaining majority.

➢ Tagore v. Tagore
➢ Whitby v. Mitchell: - Transferor gifted property to B for life and then for unborn
child of B for life; and then to the unborn child of that unborn child and so on. The
court held it void: - A child to a bachelor is a possibility. A child to an unborn child
is a possibility upon a possibility. Thus law is against double possibilities.

Rule against perpetuity or rule against remoteness of vesting (Section 14)

Property cannot be tied up forever. Law is always in favour of disposition and circulation
of property from hands to hands. Section 14 prevents the tying up of property for many
generations. Illustration:- A property is transferred to X for life time , then to Y for life and
then to the son to be born to Y for life and after his death the son to be born to him, and
so on. In the above transfer, the property cannot be transferred until all person have their
turn of enjoyment and it come into the hands of a person ultimately. Section 14 strikes
this method; and one cannot postpone the vesting of the property in a transferee beyond
a particular period called perpetuity period. ie. life in being at the date of transfer +
period of minority of the unborn.

Exceptions:-

(a) Transfer for the benefit of the public.

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 (b) Personal contracts where a personal obligation alone is transferred.
Eg: Appointment of poojari from generation to generation.

Class Transfer (Section 15)

Illustration:-‘A’ transfers his property not to a particular person, but to a class of persons
(for instance, to his grand children- children of son/daughter-both male & female)
Old position:-Rule in Leake v. Robinson: - if the transfer fails with regard to any person
in the class due to violation of S.13 or 14, the whole transfer fails.

Present position:-If on a transfer, an interest is created in favour of a class of person,

with regard to some in the class the interest fails; such interest fails with regard to that
persons only and not regard to the whole class.

What happens when a prior interest fails?

Section 16 gives the answer:

PRIOR
A >-- INTEREST >---- B >--- SUBSEQUENT -- >----- C
INTEREST

In this transfer, prior interest is given in favour of ‘B’ and subsequent interest is given in
favour of ‘C.’ As per Section 16, if the prior interest fails due to the violation of Section 13
or 14, the subsequent interest also fails.
Exception:- Doctrine of Acceleration (Section 27) If the prior interest fails because a
valid condition has not been fulfilled, the subsequent interest is accelerated and takes
effect as if the prior interest was never in the way. (Ajudhia v. Rehman Kaur: A bequest
was given to the wife for life and then to the children. The transfer to the wife failed under
a local law for the want of registration. The court held that the interest accelerated in
favour of children.

Doctrine for Accumulation of income (Section 17)

‘A’ transfers his rubber estate to ‘B’ with a condition that the income from the rubber
estate must be accumulated for ‘A.’ The direction to accumulate income arising out of a
transferred property would be regarded as void if it is beyond a particular period.

Indian Law

Old Position: - One year from the date of transfer.

Present position: - Lifetime of the transferor or 18 years from the date of transfer
whichever is longer.

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English Law
Old Position: - Rule in Thelluson v. Woodford (House of Lords upheld accumulation for
nine successive generations).
Present position: - In 1800, the Parliament enacted the Accumulation Act popularly
known as Thelluson Act, imposing restrictions and today the law permits a maximum of
21 years from the death of the transferor.

Under the Indian law, Section 17 recognizes certain exceptions wherein the transferor
can prescribe a longer period for accumulation than that prescribed by the Act. They are:
➢ For the benefit of the children of the transferor
➢ To settle the liability of the transferor
➢ To be utilized for the preservation of the transferred property itself.
➢ Public interest

Conditional Transfer

Transfer can be: - (i) Absolute (without any conditions) OR (ii) Conditional (with
condition attached). The interest a transferee gets from the transfer can be either:-

➢ Vested interest: - Eg.- The terms of the transfer specifies that the transfer shall
take effect forthwith or immediately.
➢ Contingent interest: - Eg. :- if the terms of the transfer states that the transfer
takes effect only on the happening or non-happening of a specified uncertain event
. On happening of that condition, the contingent interest gets vested.

The conditions attached to a transfer can be:-

➢ Condition precedent:- on the happening of such a condition, an interest gets

vested in a person
➢ Condition subsequent:-On the happening of such a condition, an already vested
right gets divested from a person
➢ Conditional limitation:- On the happening of it, an already vested right gets
divested from one person and gets vested in another person.(Illustration:- A
property is transferred to the son with a condition that if a daughter is born, she
will have the property. On the birth of a daughter, son’s right gets divested and
gets vested in the daughter.)

Differences between ‘condition precedent’ and ‘condition subsequent’

CONDITION PRECEDENT CONDITION SUBSEQUENT

(1) On the happening, an interest gets (1) On the happening, an already vested
vested. right gets divested

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 (2) If the condition is impossible or (2) In such cases, law ignores the
illegal, the transfer becomes void condition; and the right becomes
absolute.
(3) Doctrine of Cypres applicable – (3) Not applicable
(“Cypres” means ‘‘as near as possible’’)
Eg.:-‘A ‘transfers his property to ‘B ‘with
a condition that ‘B’ shall marry ‘C’, after
obtaining the consent of ‘X,’ ‘ Y’ & ‘Z.’
‘B’ sought the consent of X and Y; but Z
dies. Here law apply the doctrine of
Cypres and deems that the condition has
been fulfilled.
4. Substantial compliance of the 4. Strict compliance is necessary
condition is enough

Therefore one can say that ‘‘law always leans in favour of vesting and is against
divesting.’’

Doctrine of Election (Section 35)

“Election” means “to choose one from alternatives.” The basis of this doctrine is that one
person cannot accept and reject under the same instrument or one person cannot
approbate and reprobate at the same time (Cooper v. Cooper). A person transfers another
person’s property. A benefit is conferred upon the real owner through the same
document or instrument. The real owner is put to an election- either:

(1) Accept the benefit, and part with the property; or

(2) Reject the benefit, and claim back the property.
Doctrine of Apportionment (Section 37)

“Apportionment’’ mean ‘‘division of benefit or obligation on severance of property.’’ If,

on a transfer, the property is divided and held in several shares, the obligations relating
to that property as a whole passes from one owner to several owners in proportion to
their share in the property. Illustration: - “A”, the owner of the property obliges to pay
Rs.1 lakh. The property is subsequently divided into three shares- half is purchased by X;
quarter each by Y and Z. Then X is liable to pay Rs.50, 000/- Y- Rs. 25,000/- and Z Rs.
25,000/respectively.

Doctrine of Holding Out or Transfer by ostensible (not real) or Apparent Owner

(Section 41)

The real owner of a property (A) holds out another person (B) as the owner. Believing
this in good faith, a third party (C) purchases the property. Subsequently, the real owner
(A) cannot recover the property from the third party. (Subramonia Pillai v Kumara Pillai)
This doctrine is an exception to the rule “Nemo dat quod not habet” which means “no one
can convey a better title than he himself has” i.e., if the transferor has no title, the

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transferee will not get the title. But under Section 41, though the transferor (B) has no
title, the bonafide transferee (C) get a valid title (Ram Coomar v. Mac Queen)

Doctrine of feeding the grant by estoppel (Section 43)

‘X’ having no authority over a property, fraudulently transferred the property to ‘Y’, a
bonafide purchaser. While the contract is subsisting ‘X’ acquires the ownership of the
property; then ‘X’ cannot deny ‘Y’s right. (Thilakdhari Lal v. Khedan Lal)

Doctrine of equitable estoppel by acquiescence (Section 51)

A transferee who hold the property under defective title and has made improvements on
that property, can claim compensation for the improvements made by him from the
better title holder who evicts him. (Narayana Rao v. Bhasava Rayappa). But this provision
does not apply to trespassers. Illustration: ‘A’ purchases a property from ‘B’ and makes
improvements in the property. Subsequently, ‘C; comes with a better title over the
property. Here ‘A’ can claim compensation from ‘C’ if ‘C’ tries to evict A.
Doctrine of Lis pendens (Section 52)

“Lis pendens” means “a suit pending before a court of law.” As per this section, nothing
new shall be introduced in a pending litigation. If, during the pendency of a suit, one of
the parties transfers the subject matter property without the consent of the Court, the
transferee will be bound by the court order. The transfer as such is not void. (Saraswathy
Amma v. Bhaskara Pillai) Illustration: - Suit going on between ‘A’ and ‘B’. ‘A’ transfers the
subject matter property to ‘C’ while the suit is pending before the Court. The court decrees
in favour of ‘B’. ‘C’ is bound by the Court decree (Bellamy v. Sabine)
Fraudulent Transfer (Section 53)

A transfer made with an intention to defraud the creditors of the transferor will be
voidable at the option of the creditors. In Twynes Case, the Court held that secrecy is a
badge of fraud. Illustration:- ‘X’ owes Rs. 25 lakhs to ‘Y’. In order to defeat the claim of ‘Y’,
he transfers the property to ‘Z’. The transfer is voidable at the option of ‘Y’.
Doctrine of Part Performance (Section 53 A)

If the transferee is ready and willing to perform his part, the transferor must also perform
his part under the contract (Madison v. Alderson). For the application of this doctrine, the
following conditions must be fulfilled.
➢ There must be a contract to transfer immovable property for consideration.
➢ It must be in writing and signed by the transferor or agent.
➢ The transferee is put in possession of the property in furtherance of contract.
➢ The transferee is ready and willing to perform his part under the contract.
If the above conditions are satisfied, the transferee cannot be evicted.

SPECIFIC TRANSFERS
SALE (SECTION 54)
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It is the transfer of ownership of immovable property in exchange for a price paid or
promise to be paid. The essential of sale are as follows:-
➢ Two parties: - The Buyer or Seller or Vendor and Purchaser-parties must be major
with a sound mind; and the vendor shall be having title over the property.
➢ Subject matter: - Immovable property not covered under Section 6.
➢ Consideration: - In terms of money (otherwise the transaction becomes
exchange.)
➢ Proper conveyance: - If value is above Rs.100/-, transfer only by a registered
instrument.

Contract of Sale: (Sale) and agreement to sell (Contract for Sale): In the case of sale,
transfer of ownership takes place immediately. But in the case of agreement to sell, the
transfer of ownership takes place in future date. Sale creates a right in rem in favour of
the buyer. But the agreement to sell creates only a right in personam.

Rights and Duties of the parties

I. Sellers’ duty before the completion of sale
a. Disclose material facts as well as defects.
b. Produce title deed for inspection.
c. Answer questions as to the title.
d. Execute conveyance.
e. Take care of the property.
f. Pay public charges like taxes etc.
II. Buyer’s duties before the completion of sale
a. Pay the price.
b. Disclose facts that materially increase the value of the property.
III. Seller’s Rights before the completion of sale
a. Get rent and profit.
IV. Buyer’s rights before the completion of sale
a. Charge over the property for the advance amount paid.
V. Rights of the seller after the completion of sale
a. Unpaid vendors’ charge (Webb v. Macpherson)
VI. Rights of the buyer after the completion of sale
a. To receive rent and profit
VII. Sellers’ duty after the completion of sale
a. Deliver possession of the property.
b. Implied agreement for title.
c. Deliver title deeds.
VIII. Buyers’ duties after the completion of sale
a. Bear the loss to the property.
b. Pay public charges.

MORTGAGE (SECTION 58 (A))

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Transfer of an interest in a specific immovable property as a security for a debt or
performance of a promise. The transferor is called mortgager and the transferee is called
mortgagee. The transaction is called mortgage. The agreement is called mortgage deed
and the principal money and interest of which payment is secured is called mortgage
money.

Different kinds of Mortgage

➢ Simple mortgage-
a. Mortgagor retains the possession of the property.
b. Mortgagor binds himself personally to pay the mortgage money
c. What is transferred to the mortgagee is the right to sell the
property through the court.
➢ Mortgage by conditional sale-Here the mortgager ostensibly (not real) sells the
property to the mortgagee with the following conditions:
a. If payment is made on a particular date, the sale becomes void.
b. If defaulted, the sale becomes absolute.
c. On payment, the mortgagee must transfer property to the
mortgager.
➢ Usufructuary mortgage (‘‘usufructs’’ means ‘‘income from the property’’)
a. Mortgager delivers possession to the mortgagee
b. Mortgagee is entitled to receive profits and rents from the property
and has to appropriate in the payment of mortgage money
➢ English mortgage
a. Mortgager undertakes a personal liability to pay the amount.
b. Mortgager transfers the property to the mortgagee.
c. Mortgagee agrees to re-transfer it on the payment
d. Mortgagee entitled to possession and can receive profits and rents
to be appropriated in the payment of mortgage money.
➢ Equitable mortgage (By deposit of title deeds)
a. Mortgager delivers the documents of title with an intention to
create a security
b. This type of mortgage can be created only in certain towns notified
by the State Govt. in the official Gazette (E.g. Trivandrum, Calcutta,
Madras, Mumbai etc).
c. Mortgagee not entitled to possession.
d. Remedy of the mortgagee is a suit for sale.
➢ Anomalous mortgage
A composite mortgage found by the combination of two or more of the
above types. The Act defines it as the mortgage which is not a simple
mortgage, mortgage by a conditional sale, usufructuary mortgage,
English mortgage or equitable mortgage.

Differences between “English Mortgage” and “Mortgage by Conditional Sale”

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 English Mortgage Mortgage by Conditional Sale
(1) Mortgager has personal (1) No personal liability
liability
(2) Ownership is transferred to (2) Ostensible ownership is
the mortgagee transferred
(3) Mortgagee has possession (3)No possession
of the property
(4) Remedy is sale through (4) Remedy is foreclosure
Court (irreversible closure)

Rights of the Mortgager

➢ Right of redemption: (To get back the property when the mortgage money is
paid) - “once a mortgage, always a mortgage, not a sale.” Hence, a mortgage cannot
be made irredeemable; and any condition or stipulation in the mortgage deed
preventing the mortgager from exercising the right of redemption is regarded as
a clog (obstruction) and it is void (Noakes & Co. v. Rice). Such a condition can be
ignored and the mortgager can take back the property.

Duties of Mortgager:

➢ Covenant for title

➢ Covenant for payment of public charges
➢ Defend the title of the property
➢ Not to commit waste to the property (shall not commit any act which is destructive
or injurious to the property)

Rights of the Mortgagee

➢ Right of fore-closure: This right can be exercised at any time the mortgage money
has become due and before a decree of redemption is passed. A suit to obtain a
decree that the mortgager shall absolutely be debarred of his right to redeem is
called a suit for fore-closure.
➢ Right of sale
➢ Right to sue for mortgage money
➢ Right to appoint receiver

Duties of Mortgagee

If in possession of the property, the mortgagee is having the following duties:

➢ Manage the property as a man of ordinary prudence.
➢ Collect rent and profits.
➢ Keep proper accounts of receipts and payments.
➢ Pay Government dues unless there is a contract to the contrary.
➢ Apply the money as agreed in the deed (adjust the profit with the interest)

Doctrine of consolidation

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Under the English law, if two or more mortgages are created in favour of the same
mortgagee, he could require the mortgager to redeem all the mortgages jointly. But in
India, the doctrine is not applicable and hence the mortgager can redeem different
mortgages simultaneously or separately, unless there is a contract to the contrary.

Doctrine of marshalling
If the owner of two immovable properties (X, Y) mortgages both the properties to a
mortgagee and subsequently mortgages one of them (Y) to another mortgagee, the
subsequent mortgagee can require the prior mortgagee to proceed against the property
which is not mortgaged to the subsequent mortgagee for the recovery of money. This
right is called”marshalling.” Illustration: ‘A’ mortgages his properties ‘X’ and ‘Y’ to ‘B; and
then mortgages ‘Y’ alone to ‘C’. Here ‘B’ is the prior mortgagee and ‘C’ is the subsequent
mortgagee. In such a case, ‘C’ can require ‘B’ to proceed against ‘X’ property so as to enable
‘C’ to have ‘Y’ property.

A B

Y C

Doctrine of contribution (Section 82)

If the mortgaged property belongs to two or more persons, each shareholder is liable to
contribute rateably to the debt. Illustration:- A,B and C jointly borrowed Rs. one lakh and
divided the amount as Rs. 50,000/-, Rs.30,000/- and Rs.20,000/- respectively. Liability of
‘A’ is to extent of Rs, 50,000/-, B is Rs.30,000/- and C is to extent of Rs. 20,000/-

CHARGE (SECTION 100)

If an immovable property of one person is made security for the payment of money to
another; and the transaction does not amount to mortgage, the person entitled to recover
money will get a charge over that property. It can be created by act of party or operation
of law.

Differences between “mortgage” and “charge”

Mortgage Charge
(1) Interest in the immovable (1) Interest not transferred to
property is transferred to the the charge holder
mortgagee

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 (2) Can be created by the act of
parties
(3) Mortgagee has many
remedies including sale, fore-
closure etc.
(2) By act of parties or operation
of law
(3) Charge holder has only one
remedy i.e. sale through the
court

LEASE (SECTIONS 105 TO 115)

The transfer of right of enjoyment of an immovable property for a consideration, money,
share of crops and any other valuable things. The transferor is called lessor and the
transferee is called lessee and the consideration is called rent or premium.

Duties of Lessor:-
o Duty to disclose the defects, if any .
o Duty to give possession.
o Covenant for quiet enjoyment.
Rights of Lessee
o Enjoy accretions (addition).
o Avoid the lease if the property becomes unfit due to fire, flood
etc.
o Repair the property and can claim the amount from the lessor
o Remove fixtures after determination of lease.
o Right to benefit the crops.
o Assign his interest to another person, if there is no contract to
the contrary (sub-lease)
Duties of Lessee

Disclose material facts which increase the value of the lease hold.
o
Pay rent
o
Keep the property in good condition.
o
Restore possession after the termination of lease.
o
Permit inspection by the lessor.
o
Not to construct permanent structures without the lessor’s
o
consent.
Termination of Lease

o Expiry of period prescribed in the lease deed.

o Happening of a contingent event.
o By merger:-Lessee purchases the property.
o By surrender- by the lessee
o Forfeiture – by the lessor if any condition is violated by the lessee.
o By giving notice to quit.

➢ Tenancy by holding over: If the lessee remains in possession even after the
termination of lease and the lessor accepts the rent and allow the lessee to
continue it is called “tenancy by holding over.” Here the lessee is not a trespasser.

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 ➢ Tenancy by sufferance: If the lessee continues in possession of the property ever
after the termination of lease, without the consent of the lessor, it is called
“tenancy by sufferance.
➢ Tenancy at will: If the period of the lease is not specified in the lease deed, it is
called Tenancy at will. It can be put to an end by demand for possession on the
part of the landlord.

EXCHANGE (SECTIONS 118 TO 121)

Here one person transfers ownership of a property for the ownership of another property
belonging to another person. If consideration is given as money, it becomes sale and if
consideration is partly money and partly ownership of a thing, it becomes an exchange.
It is a form of barter system.
GIFT (SECTIONS 122 TO 129)

Transfer of ownership of a property without consideration. Transferor is called donor

and transferee is called donee. If the donee dies before acceptance, the gift is void. The
donor must be a major with a sound mind. The donee can be a minor or even an unborn
(subject to condition of Section 13).
➢ Resumable gift:- which can be revoked at any time at the mere will of the donor.
It is void.
➢ Conditional gift:- the gift with a condition. It is valid.
➢ Onerous gift:- Gift with a burden or obligation. Burden or obligation is placed
upon the shoulder of the donee.
➢ Universal donee: When a person makes a gift of his whole property to another
person, the donee is called “universal donee.” Such donee is under an obligation
to clear off the debts and liabilities of the donor to the extent of the property
received.
➢ Donatio mortis causa (Death-bed-gift)
o Governed by Indian Succession Act, 1925. (For Muslims, Hiba Marz-
ul-Maut is governed by the Khuran)
o Succession Act recognizes death-bed-gift of movable property only.
o The donor should be suffering from illness and apprehends
immediate death.
o Gift should be made by delivering the possession of the movable
property.
o The gift takes effect only if the donor dies. If he/she recovers, the
gift will be resumed.

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