PERSONS COMPETENT TO TRANSFER (Section-7 )
PERSONS COMPETENT TO TRANSFER (Section-7)
Every person competent to contract and entitled to transferable property, or authorized to dispose of transferable property not his own, is competent to transfer such property either wholly or in part, and either absolutely or conditionally, in the circumstances, to the extent and in the manner, allowed and prescribed by any law for the time being in force.
Who is a Transferor?
Every person who is competent to contract as per the Indian Contract Act is also competent to transfer a property provided that he is authorized to transfer it as per the law. The term “authorized” needs to emphasize. If transferor is not owner of the property he purports to transfer he must show that he is otherwise authorizes by law to transfer the property.
Who is a Transferee?
As far as a transferee is concerned there is no such requirement that he must be competent to contract. So, a minor, lunatic- all they can be transferees. However, a few limitations are there. First in the lease of lease both transferor and transferee have to be major or otherwise competent to make contract. Second, if a gift is made to a minor, it has to be accepted by its guardian. Apart from these, there may also be some special provisions which attach some (dis)qualification to a person wanted to be a transferee. For Eg: S.136 of the T.P. Act provides that officers of the court including judges and advocates cannot be assignee of actionable claims.
COMPETENT TO TRANSFER
Under S 6(h) (3), any person is competent to be a transferee, unless legally disqualified. This section deals with the competency of a transferor. The transferor must be-
a) competent to contract; and
b) have title to the property or authority to transfer it if not his own.
COMPETENT TO CONTRACT
This is the same...