Ground of Difference Vested Interest and Contingent interest

Vested Interest

(1) Section: Section 19 of the Transfer of Property Act, 1882.(2) Meaning : An interest is said to be
vested when it is not subject to any condition, precedent, i.e., when it is to take effect on the happening
of an event which is certain (3) Condition : The condition involves a specified certain event. A certain
event means an event that will eventually happen (4) Right of Ownership: This right is created as soon
as the interest is vested.(5) Death of transferee: Death of the person who is having this interest will not
have any effect over that interest as after the deceased, the interest will vest in his legal heirs.(6)
Transferable and heritable : Vested interest is a Transferable and heritable right.(7) The present right of
enjoyment: There is present, immediate right even when its enjoyment is postponed.(8) Examples : X
professes to transfer the property ‘O’ to Y when he attains the age of 20. There is a vested interest with
Y for the property ‘O’.

Contingent interest

(1) Section: Section 21 of the Transfer of Property Act, 1882. (2) Meaning : An estate is contingent
when the right to enjoyment depends upon the happening of an event which may or may not happen.
(3) ) Condition : The condition involves a specified uncertain event. There is a chance of the happening
or non-happening of that particular event.(4) Right of Ownership: There is mere chance to be having
the ownership rights.(5) ) Death of transferee: Death of the transferee before getting the possession of
the property will result in the failure of continent interest and the property will remain with the
transferor.(6) Transferable and heritable : Contingent interest is a Transferable right, but whether it is
heritable or not, it depends upon the nature of such any transfer and the condition(7) The present right
of enjoyment:There is no present right of enjoyment, there is a mere expectancy of having such a right
(8) ) Examples : X professes to transfer the property ‘O’ to Y on the condition that he shall construct a
well in his property. If he constructs, Y shall get contingent interest in the property until the condition is
not fulfilled.
DOCTRINE OF ELECTION

Section 35 of the Transfer of Property Act deals with what is called doctrine of election. ‘Election’ may
be defined as “the choosing between two rights where there is a clear intention that both were not
intended to be enjoyed”. The foundation of doctrine of election is that a person taking the benefit of an
instrument must also bear the burden, and he must not take under and against the same instrument. It
is, a general rule that no one may approbate and reprobate. For eg:- A transfers to you his paddy field
and in the same deed of transfer asks you to transfer your house to C. Now, if you want to have the
paddy field you must transfer your house to C, because the transferor is transferring to you his paddy
field on the condition that you give your house to C. Thus, either you take the paddy field and part with
your house or do not take it at all. This is called the doctrine of election

Essential Conditions
In the case of Mst. Dhanpatti v Devi Prasad and others, the Supreme Court established the necessary
requirements for the doctrine of election
The following are the prerequisites for the application of the election doctrine:
• In order for a property to be transferred, the transferor must claim possession of the property being
transferred.
• In order for a transfer to be legal, the owner of the property being transferred must get some kind of
benefit from the transferor.
• This is a two-part transaction: transferring something and receiving something in exchange for it.
• The property owner must get the benefit directly.
• The benefit must be provided to him in a similar manner as he now holds ownership of the property.

Case Laws Related to The Doctrine of Election

Mohd. Kader Ali Fakir v. Lukman Hakim

In this case the court says that, according to this doctrine, those who use an instrument must also bear
its weight, and they can’t carry it both ways at the same time. No one can accept or reject this as a
breach of universal norms.
Mortgage

As per Section 58 of Transfer of Property Act, 1882 A mortgage is the transfer of an interest in immovable property for the
purpose of securing the payment of money advanced, an existing or future debt or the performance of an engagement which may
give rise to a pecuniary liability. is the transfer of an interest in immovable property for the purpose of securing the payment of
money advanced, an existing or future debt or the performance of an engagement which may give rise to a pecuniary liability.
Essential conditions of a mortgage: 1. there is a transfer of interest to the mortgagee. 2. The interest created in specific
immovable property. 3. The mortgage should be supported by consideration. Kinds of Mortgage As per Section 58 of Transfer of
Property, there are six kinds of mortgages (1) Simple mortgage: If the mortgagor fails to repay the loan amount then, the lender
sells the property to recover the loan amount. (2) Mortgage by Conditional Sale: In this type the lender sells the property on the
default of the mortgage payment by the set dat. Once the date is passed, the sale becomes absolute. (3) Usufructuary mortgage: In
this option the lender delivers the possession aka property along with the right to enjoy an income of and from the property to the
mortgagee. (4) English mortgage: Under this option, the lender takes possession of the property when the payment is not done.
There is a binding commitment that upon payment of the loan amount, the property will be transferred back to the mortgagor (5)
Mortgage by deposit of title-deeds: In this option the mortgagor transfers the title deed of his property to the lender. This creates
a transfer of title deed or transfer of property when the payment is not done. (6) Anomalous mortgage: If the mortgage does not
fall under the categories mentioned above, then it is deemed as Anomalous mortgage

Rights and Liabilities of Mortgagor and Mortgagee:

Rights of Mortgagor:

1. Right to Redemption: Section 60 of the Transfer of property Act states that the Mortgagor has the right of redemption of the
Mortgaged property after payment of Mortgaged money. This right puts an end to Mortgage by returning the property of
Mortgagor.2.Transfer to a third party :Section 60A , this right provides the Mortgagor with authority to ask the Mortgagee to
assign the Mortgage debt and transfer the property to a third person directed by him. The purpose of this right is to help the
Mortgagor to pay off the Mortgagee by taking a loan from a third person on the same security. 3.Right to inspection and
production of documents: Section 60B , which talks about the inspection and production of the documents. On a reasonable
time Mortgagor can check the documents with the Mortgagee. The expenses incurred on production or copies of documents or
travel expenses of a Mortgagee are to be paid by the Mortgagor.4.Accession of Mortgaged Property: Section 63 , talks about
the Accession of property. The word accession means any addition to property. Addition by way of construction. In case an
accession is made to the property due to the efforts of Mortgagee or at his expense and such accession is inseparable,
Mortgagor, in order to be entitled to such succession, needs to pay the Mortgagee the expense of acquiring such accession. 5.
Improvement to Mortgaged Property: This section 63A, according to this right if the Mortgaged property has been improved
while it was in possession of Mortgagee, then on redemption and in the absence of any contract to the contrary Mortgagor is
entitled to such improvement. The Mortgagor is not liable to pay Mortgagee unless:Improvements made by the Mortgagee
were to protect the property or with the prior permission of Mortgagor or Improvements were made by the Mortgagee with
the permission of the public authority. 6. Mortgagor’s power to lease: Section 65A , by this provision of the act the Mortgagor
can leave for lease the Mortgage property with conditions acceptable by the Mortgagee. Prior to this right, the Transfer of
Property Act did not allow a Mortgagor to lease out the Mortgaged property on his own but only with the permission of
Mortgagee

Liabilities of Mortgagor: 1.Payment of Public Charges: Section 65(c) states that the Mortgagor will, so long as the Mortgagee is
not in possession of the Mortgaged property, pay all public charges accruing due in respect of the property.2.Lease/Rent:
Section 65(d) of the Act, states that where the Mortgaged property is leased by Mortgagor then it is his duty to direct lessee to
pay the rent, etc. to the Mortgagee. 3.Pay the interest time to time: Section 65(e) of the act, it is the duty of the Mortgagor to
pay interest to the Mortgagee on time.4.Not to waste(deteriorate) the property: Section 66 of the act imposes a duty on the
Mortgagor to not to commit any act which leads to the waste of property or any act which reduces the value of the Mortgaged
property.
Rights of Mortgagee: 1.Right to foreclosure or sale: Section 67 This section states that at any time after the Mortgage money
has become due, the Mortgagee has the right to obtain from the court, a decree for foreclosure.2.Right to sue for Mortgage-
money: Section 68 of the Transfer of Property Act states that the Mortgagee has right to sue for the Mortgage-money in the
following cases:(a).when the Mortgagor binds to repay the money.(b).when the Mortgagor's property is wholly or partly
destroyed by any cause other than the wrongful act or default of the Mortgagee.(c).when the Mortgagee is deprived of the
whole or part of his security.(d).when the Mortgagee was entitled to possession of the Mortgaged property and the Mortgagor
has failed to deliver it.3.Power to sale when valid: Section 69, states that in the following cases the sale is valid.(a).When the
Mortgage is English Mortgage between Non Hindus, Non Muslims, Non Mohammedans and member of the race or sect notified
by the State Government to the Official Gazette.(b).When Government is the Mortgagee, with the express provision of sale
without intervention of the court.(c).When the Mortgaged property is situated at Calcutta, Madras, Bombay or any other
gazetted town or area.4.Right of accession: The Mortgagee has the right of accession to the increased Mortgaged property.
The Mortgagee has the right of accession to the increased properties for renewal of security.5.Right to renewal of lease:
If the Mortgaged property is under lease, the Mortgagee is entitled for renewal of the lease for purpose of security.6.Right to
reimbursement of expenses:The Mortgagee has the right for reimbursement with interest for the money spent for purposes
like preservation of Mortgaged property etc.7.Right to mesne Mortgage:When a property is Mortgaged for successive debts to
successive Mortgages a menses Mortgagee has the same rights against Mortgagee posterior to himself as he has against the
Mortgagor.

Liabilities of Mortgagee: (Section 76) 1.Bound to sue:A Mortgagee is bound to sue on behalf of all the Mortgagees in respect of
which the Mortgage money has become due in the absence of express contract. During the continuance of the Mortgage, the
Mortgagee is bound.2.Bound to manage property: Mortgagee has duty to manage the property as a person of ordinary
prudence would manage if it were his own.3.Bound to collect rents: To use his best endeavour to collect the rents and profits
thereof.4.Bound to pay government revenue and other charges:In the absence of a contract to the contrary, Mortgagee has
duty to pay Government revenue and the other charges of a public nature and all rents, out of the income of the property.
5.Bound to make necessary repairs In the absence of a contract to the contrary, Mortgagee has duty to make such necessary
repairs as the income of the property permits. 6.Not to cause destruction or permanent injury:Mortgagee has duty not to
commit an act which is destructive or permanently injurious to the property.7.If any loss or damage due to fire etc.:
When the whole or any part of the property is insured against loss or damage by fire, in case of such loss or damage to reinstate
the insured property with the money obtained from the insurance policy or to discharge the Mortgage debt with it, if the
Mortgagor so directs.
LEASE

Section 105 of the Transfer of Property Act, 1882 defines "Lease". "A lease of immovable
property is a transfer of a right to enjoy such property made for a certain time express or implied
or in perpetuity in consideration of a price paid or promised or of money a share of crops service
or any other thing of value to be rendered periodically or on specified occasions to the transferor
by the transferee, who accepts the transfer on such terms. Lease is an agreement wherein the
owner of the property (the lessor) transfers his/her right of possession and use of the property to
the lessee. The following are the elements which governs the Rights and Liabilities of a Lessor and Lessee:
1. Any contract between the parties
2. Local custom or usage
3. Provisions of section 108 of the Transfer of Property Act, 1882.

Rights and Liabilities of Lessor and Lessee:

Rights of the Lessor are as follows:

Section 108 of the Act does not provide for any specific right of the Lessor. The liabilities of Lessee as given in section 108,
would thereby mean identical to the rights of the Lessor.(1).The Lessor has the right to collect rent or any form of consideration
as mentioned in the terms and conditions of the contract from the tenant without any form of interruptions.(2).The Lessor has
right to take back the possession of his property from the Lessee, if the Lessee commits any breach of condition.(3).The Lessor
has right to take back the possession of his property from the Lessee on the termination of the lease term prescribed in
the agreement or if the Lessee commits any breach of condition.(4).The Lessor has right to recover the amount of damages
from the Lessee if there is any damage done to the property. Case Law: Paritosh Ghosh vs. Ashim Kumar Gupta
In this case, the tenant made holes in walls for fixing air cooler, replace brass water caps by plastic caps, in violation of lease
agreement, the eviction of the tenant was held proper.

Liabilities of the Lessor are as follows:

(1).It is the duty of the Lessor to not cause any form of interruptions during the tenancy period.(2).The Lessor must give
possession of the property to the Lessee on Lessee’s request. However, this liability only arises when there is a request on
behalf of the Lessee.(3).The Lessor is bound to disclose any form of a material defect in the property.Case Law: Munne Dutt vs.
William cumpbell In this case court held that, in every case there is an implied contract that Lessor will give peaceful
possession of the land leased to the Lessee.

Rights of the Lessee:

(1).The Lessee has the right to avoid the lease in case of any destruction of property by fire or flood, or violence of an army or of
a mob, or other irresistible force.(2).The Lessee has right to repair the property when Lessor fails to do so and to deduct the
cost of repairs from the rent.(3).The Lessee has right to make such payments which are obligatory on the Lessor and to deduct
that amount from the rent.(4).The Lessee has right to enjoy the accretions to the leased property.(5).The Lessee has right to
remove the fixtures made by him during the tenancy.(6).He has right to enjoy the benefit of crops growing on the land sown or
planted by the Lessor.(7).The Lessee can sub-lease the property or the Lessee can absolutely transfer his interests. However, if
the lease deed restricts a Lessee to assign his interest then the Lessee is prohibited to do so and even after the transfer of his
rights, the Lessee is still subject to all the liabilities related to the lease deed.

Liabilities of the Lessee:

(1).The Lessee is bound to pay the rent or the premium to the Lessor or his agent in the proper time and proper place as
decided by the lease deed.(2).If the Lessee becomes aware that any person has tried or is trying to damage the rights of the
Lessor or the title of the Lessor is endangered then, in that case, the Lessee must give notice to the Lessor.(3).The Lessee has
duty to use the property in a manner as if it was his/her own property.(4).The Lessee is bound to inform the Lessor of any
material fact which the Lessee is aware of and the Lessor is not. In case the Lessee does not disclose such fact and the Lessor
suffers any loss then the Lessee is bound to compensate the Lessor.(5).If Lessee gets to know about any proceedings relating to
the property or any encroachment or any interference, then Lessee is under an obligation to give notice to the Lessor.(6).The
Lessee has duty to not to erect on the property any permanent structure without Lessor’s consent.

Determination of Lease (Sn 111) A lease of an immovable property can be determined through 8
modes and it is only by one of these methods that the lease stands determined and the lessor gets
back right of possession of the property; (1). By efflux of time, or at end of time specified in
lease agreement (2). When agreement specifies the interest of the lessor terminates on happening
of an event. The interest of the lessor terminates on, or his power to dispose of the same extends
to the happening of any event; (3). By merger, if lessee purchases the property during existence
of lease (4). express surrender by lessee before the term specified in lease agreement is over (5).
implied surrender by lessee. Implied surrender is ascertainable through conduct or when lessee
renounces his character (6). forfeiture; if lessee violates a express condition and the lease
agreement gives the lessor has a right of re-entry for such violation (7). forfeiture, if lessee
denies the title of the lessor and claims the title for himself or for third party (8). When the lessee
renounces his character (9). When l

essor gives a notice to quit the leased property (for tenancy-at-will) (Sn 111(h). Such notice may
however be deemed as waived if the lessor accepts rent which has become due since expiry of
notice period.
The differences between Charge and Mortgage are as follows:-

1. While the term Charge is defined under the Section 100 of TPA; the term Mortgage is defined in Section 58 of the Act.

2. A charge-holder does not receive a transfer of interest in the Charge. The charge-holder can settle his claim against a certain property without
having to transfer it to him.; however, a Mortgage entails the transfer of an immovable property’s ownership interest.

3. While a Charge is created by an act of the parties or by the operation of the law; and on the other hand, a Mortgage can be generated by a group of
people acting together.

4. A Charge is required to be registered only required when it is triggered by the parties’ actions, whereas a registration under TPA is a must in case of
a Mortgage.

5. While time is limitless and can never end in case of Charge; the time is fixed in case of a Mortgage.

6. In Charge, personal liability arises only when an agreement creates a charge; on the other hand, a personal liability is created unless there is an
express contract prohibiting the same.

7. While in Charge, there is creation of a Right in personam[15], that is, a right that can be enforced against those individuals who are directly affected
by the charge notice; whereas, in Mortgage, there is creation of a Right in rem, that is, right that can be enforced against the entire globe.
8. A Charge can take the form of both oral and written communication but in Mortgage, the communication needs to be written.

9. A Charge is a guarantee of payment for a sum of money that may or may not be a debt; but a Mortgage is an assurance that a debt will be paid.

10. A Mortgage can be used as collateral for the performance of an engagement that results in a monetary responsibility, however, in the case of a
charge, it is not so.

11. While there cannot be a payment covenant in a charge; in Mortgage, a payment covenant may be included.

12. A charge can be enforced within 12 years, but a Mortgage can be enforced from 12 years to 30 years.
Rights and Liabilities of Buyer and Seller

In a sale, there is transfer of ownership in a property in exchange of price. The price can be a price paid, or promised,
part-paid or part-promised. The transferor is called the seller, and the transferee is called the buyer.Section 55
of the Transfer of Property Act, 1882 (TPA). confers certain rights and liabilities on the Seller and the Buyer.
The rights and liabilities of seller and buyer, are divided into two categories (1)The rights and liabilities before the
Sale.(2) The rights and liabilities after the Sale.

Seller ‘s Liabilities
Seller’s Liabilities Before Completion of Sale
(1) To disclose material defects in the property or title, if any, [Section 55(1) (a)] : Before completion of sale, the
seller is bound to disclose to the buyer and latent material defect in the property or any defect in his own title
(ownership rights).
(2) To produce the title-deeds for inspection [Section 55(1)(b)] :If the buyer requests the seller for the title-deeds
for the inspection, the seller has a duty to produce not only those documents which are in his possession but also
to make arrangements for the inspection of those documents which are within his power.
(3) To answer relevant questions as to title [Section 55(1) (c)] : The Seller’s duty is to answer all questions put
by the buyer which are relevant for passing of the title.
(4) Duty to execute Conveyance [Section 55(1) (d)] :The seller’s duty is to execute the conveyance. That is to
say, he must effect the transfer of ownership. This is done by signing or affixing thumb –impression on the sale-deed
by the seller.
(5)Care of title deed and Property [Section 55(1) (e)] : After execution of the conveyance, the next duty of the
seller is to take care of the property and the documents of title. They are to be handed over to the buyer after the
sale.
(6) Payment of the out goings [Section 55(1) (g)] ;Before completion of the sale, the seller continues to be the
owner of the property. Therefore, the government dues etc. are to be paid by him. The seller's last duty before
completion of the sale is to pay all the outgoings.

Seller’s Liabilities After Completion of Sale

(1) To give possession to the buyer [Section 55(1) (f)] :On being required by the buyer, the seller has a duty
to give possession of the property to buyer or to such person as he (buyer) directs. There is an implied
contract to give the possession of the property to buyer.
(2)To covenant for title [Section 55(2)] :In every sale, the seller impliedly undertakes a guarantee that the interest
which he is transferring subsists and he has authority to transfer the same. Technically, this is known as implied
covenant for title.
(3)To deliver title-deeds on receipt of the price [Section 55(3)]: The seller has to deliver the title-deeds of the
property to the purchaser after completion of the sale. After sale, the title-deeds are to be passed on to the buyer as
natural consequences of the transfer of ownership. The seller is liable to hand over not only those documents which
are in his possession but also those which are important and within his power.

Seller’s Rights
Seller’s Right Before Completion of Sale [Section 55(4) (a)]

(1)Before completion of Sale, the seller is entitled to all the rents, profits, or other beneficial interests of the
property.
(2)Until ownership is transferred, the seller continues to be owner and as such he has every right to enjoy the profits
of the property.
(3) The contract of sale does not create any proprietary interest in favour of the buyer.

Seller’s Right After Completion of Sale [Section 55(4)(b)]

(1) After the completion of sale, if the price or any part of it remains unpaid, the seller acquires a lien or charges on
the property.
(2) The completion of sale of an immovable property does not depend on the payment of price, the price or part of it
may also be paid after the sale. Therefore, under Section 55(4) (b) the seller is given a right to recover the unpaid
purchase-money from out of the property. This is called as a statutory charge of the seller for unpaid price.
Buyer's Liabilities

Buyer's Liabilities Before Completion of Sale

(1) To disclose facts which materially increases the value of property [Section 55(5) (a)] :The buyer is liable to
disclose to the seller the facts (Kind of Property, its location etc.) which materially increases the value of
property. This liability is limited to disclosure of only those facts which relate to title or interest of the buyer.
(2)Payment of price [Section 55(5) (b)] :The completion of sale in favour of buyer, the seller has the duty of
execution of deed and buyer has corresponding duty of payment of price. But, the buyer is not bound to pay the full
amount before transfer of ownership.

Buyer’s Liabilities After Completion of Sale

(1)To bear the loss to property, if any, [Section 55(5) (c)]: If there is any loss to property subsequent to sale, it is
the buyer who shall suffer that loss as owner of property. He cannot hold the seller to bear the loss unless it is
proved that loss was caused by seller himself.
(2) To pay the out goings [Section 55(5) (d)] :After completion of Sale, since the buyer becomes owner of the
property, he is liable to pay the outgoings e.g., Government dues, rents, revenue or taxes.

Buyer's Rights

Buyer's Right Before Completion of Sale [Sec. 55(6)]

(1) This right occurs when the seller refuses to sell, and the buyer already paid some amount in advance. This
situation creates buyers’ charges, and the buyer is entitled to get his money back with interest on it, and interest
will be paid from the date of transfer of money from the date of delivery of possession.
(2) But if due to the fault of the buyer, the sale doesn’t execute, then the buyer doesn’t have a charge on it and can’t
claim his money back.

Buyer’s Right After Completion of Sale [Section 55 (6) (a)]

(1) According to Section 55 (6) (a) of the Act, the buyer is entitled to get all the rights over the property inclusive
of all rents, profits, and also any other benefits over the property.
(2) The buyer becomes the property owner after completion of the sale or, in other words, after the transfer of
ownership, and he/she is entitled to all the benefits from the date of transfer of ownership.
Section 56 of Transfer of Property Act 1882 : "Marshalling by subsequent purchaser"

56. If the owner of two or more properties mortgages them to one person and then sells one or more
of the properties to another person, the buyer is, in the absence of a contract to the contrary, entitled
to have the mortgage-debt satisfied out of the property or properties not sold to him, so far as the
same will extend, but not so as to prejudice the rights of the mortgagee or persons claiming under
him or of any other person who has for consideration acquired an interest in any of the properties.
This Section is based on the principles of equity. It insists that when a buyer purchases some
property, its absolute interest must be protected. In Brahm Parkash v. Manbir Singh (1963), the
Supreme Court held that under Section 56, a subsequent purchaser has a right to claim marshalling.
This Section also provides that such marshalling shall not affect the rights of the mortgagee, persons
claiming under him, or any other person who has acquired any interest in the property for
consideration.

Illustration

X is the owner of property A, B and C. X mortgages all three properties (A, B,C) to Y. Subsequently, X mortgages property B
and C to Z. Hence under the rule of marshalling Y can satisfy is debt out the property A, B and C. If the debt of Y can be satisfied
out of property A alone then property B and C should be left untouched. However, if Y’s debt cannot be satisfied out of property
A alone then he can proceed to satisfy his debt from property B and C also.

Essentials of the doctrine of marshalling:(1). There should be one common mortgagor between two or more mortgagees. The
owner who is the mortgagor should own two or more properties and out of which he should mortgage one or more properties to
two or more mortgagees. (2). There should be a subsequent mortgage of the said properties to another person. (3). The precedent
mortgagee should satisfy his mortgage debt out of the properties exclusively held by him (if any) and then proceed to satisfy the
remaining debt out of the other properties. In other words, the subsequent mortgagee is entitled to have the mortgage debt
satisfied out of the property not mortgaged to him. (4). For the application of the doctrine of marshalling notice to the subsequent
mortgagee of the prior mortgage is not relevant.
 Sale and exchange are both modes of transferring property, but they differ in their essential characteristics. Here are 10 distinctions
between sale and exchange under the transfer of property:

1. Nature of Consideration:
 Sale: In a sale, the consideration is always in the form of money.
 Exchange: In an exchange, the consideration is also in the form of goods or services, not necessarily money.
2. Transfer of Ownership:
 Sale: Ownership of the property is transferred from the seller to the buyer.
 Exchange: There is a mutual transfer of ownership, where each party becomes both a seller and a buyer.
3. Number of Parties Involved:
 Sale: Involves two parties - the seller and the buyer.
 Exchange: Involves at least two parties, each acting as both a seller and a buyer.
4. Legal Basis:
 Sale: Governed by the Sale of Goods Act or relevant legal provisions.
 Exchange: Governed by the principles of exchange and barter, along with contractual laws.
5. Mode of Transfer:
 Sale: The property is transferred immediately upon the completion of the sale agreement.
 Exchange: The property is transferred simultaneously, with each party giving and receiving something of value.
6. Consideration in Money:
 Sale: The consideration is typically in the form of money.
 Exchange: The consideration can be goods, services, money, or a combination of these.
7. Mutuality of Purpose:
 Sale: The primary purpose is to transfer ownership in exchange for monetary consideration.
 Exchange: Both parties have something they want to exchange, and the primary purpose is not just the transfer of
ownership.
8. Tax Implications:
 Sale: Tax implications are usually straightforward, involving the taxation of the sale amount.
 Exchange: Tax implications may vary depending on the nature of the exchange, including the valuation of goods or
services exchanged.
9. Risk and Reward:
 Sale: The risk and reward associated with the property are transferred from the seller to the buyer.
 Exchange: Both parties assume risks and rewards associated with the properties they exchange.
10. Subject Matter:
 Sale: Involves the transfer of property for a price.
 Exchange: Involves the mutual transfer of property between parties.
 The transfer of property can occur through

various means, including sale and gift. Here are 10 distinctions between sale and gift under the transfer of property:

1. Consideration:
 Sale: In a sale, there is a consideration involved, usually in the form of money or something of value exchanged between
the parties.
 Gift: A gift, on the other hand, is a transfer without any consideration. It is voluntary and is not dependent on receiving
something in return.
2. Intention to Transfer Property:
 Sale: The primary purpose of a sale is the exchange of property for value, indicating a clear intention to transfer
ownership.
 Gift: A gift is made with the intention of giving the property as a present, without expecting anything in return.
3. Transfer of Ownership:
 Sale: Ownership is transferred immediately upon the completion of the sale, typically after payment is made.
 Gift: Ownership is transferred immediately upon the making of the gift, without the need for payment.
4. Registration and Formalities:
 Sale: Sales often involve formal legal procedures, including documentation, registration, and adherence to specific legal
formalities.
 Gift: While some jurisdictions may require documentation for gifts, they generally involve fewer formalities compared to
sales.
5. Tax Implications:
 Sale: Sales may be subject to taxes, such as capital gains tax, depending on the jurisdiction and the nature of the
transaction.
 Gift: Gifts may also have tax implications, but they are typically subject to different rules than sales.
6. Right to Revoke:
 Sale: Once a sale is completed, it is generally irrevocable. The seller cannot easily reclaim the sold property.
 Gift: In some cases, a gift can be revoked if certain conditions are not met, especially if it is conditional or there is a lack of
delivery.
7. Legal Status of Parties:
 Sale: Parties in a sale are considered as buyer and seller, engaging in a contractual relationship.
 Gift: Parties in a gift are considered as donor and donee, and the transaction is more based on generosity than a legal
contract.
8. Payment Timing:
 Sale: Payment in a sale is typically made at the time of transfer or through agreed-upon payment terms.
 Gift: No payment is expected or required for a gift.
9. Good Faith Requirement:
 Sale: Sales usually involve an implied covenant of good faith and fair dealing between the buyer and seller.
 Gift: While good faith is desirable, it may not be legally required in the same way as in a sale.
10. Purpose and Relationship:
 Sale: The primary purpose of a sale is the exchange of value, and the relationship is more transactional.
 Gift: The primary purpose of a gift is to express generosity or affection, and the relationship is often personal.
Operation of Transfer
Section 8 of the Transfer of Property Act expresses the concept of operation of the transfer. The first paragraph states that
the courts must, in the absence of a contrary intention, hold that the transferor indented to transfer all his interests and
legal incidents in the property. Where the property transferred island, all the legal incidents such as easements, rents and
profits and things attached to earth shall be transferred. Where the property to be transferred is a house, easements, the
rents accruing after the transfer, locks, keys, bars, doors etc. shall also be transferred. Where the property to be
transferred is machinery attached to the earth, in such a case, movable parts of the machinery shall also be transferred. In
cases where the debt is transferred, the legal incident that is securities shall also be transferred. Where the property is
money or other property which may yield some kind of income, then the interest or income accruing after the transfer
takes effect shall also be transferred. In other words, the property and the legal incidents attached to the property shall be
transferred as part of the same transaction.