Q. Define 'Vested' and 'Contingent' ownership and what is the difference between both the kinds of ownership? [20 marks - 2022]
Vested and Contingent Ownership
Ownership is the legal right on a property. Ownership can be of two types Vested and Contingent.Vested Ownership
Vested ownership is when the title to the property is perfect. There is no condition attached. For example, two persons are sharing ownership of a property. If one of them die the other person gets vested ownership to the property.Contingent Ownership
In contingent ownership the person does not have a clear title to the property. On fulfilment of certain conditions he may gain the ownership. There may be two types of conditions attached to the claim of ownership. Condition precedent and condition subsequent. On fulfilment of condition precedent, clear title is obtained. On fulfilment of condition precedent the ownership is extinguished.Difference between Vested and Contingent Ownership
| Vested Ownership | Contingent Ownership |
| There is no condition in Vested Ownership | Contingent Ownersheip is conditional |
| Ownership is automatically vested | Ownership is transferred on fulfilment of the underlying condition |
| Ownership can not be destroyed | Ownership is destroyable |
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