What are the differences between Vested Ownership and Contingent Ownership?

This article describes 10 differences between Vested Ownership and Contingent Ownership.

Vested Ownership

1. Meaning: An estate is said to be vested in ownership when it gives a present right to the immediate possession and ownership of the property. While an estate which gives a present right to the further possession of property is said to be “vested interest”.
2. In a vested interest, the transferee’s is already perfect.
3. The transferee owns the right absolutely.
4. 

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   The vested interest is heritable.

5. A vested interest is not defeated by the death of the transferee before the obtains possession. The property passes to his heirs.
6. When an interest is vested, the transfer is complete and the transferee acquires all rights of a full owner.
7. Illustration: X promised A, B and C to give Rs. 1, 00,000/- each of them if their marriages occur before his death. B married before the death of X. on such marriage, the gift become a vested one in case of B.
8. Fulfillment of condition: It does not depend upon the fulfillment of any condition. It creates an immediate right through the enjoyment may be postponed to a future date.
9. The ownership is absolute.
10. The investiture fact from which a person derives the right is complete.

Contingent Ownership

1. Meaning: Contingent is that which awaits or depends on the happening of an event.
2. In a contingent interest, the title is not yet perfect. But it may become perfect. If happen certain condition annexed to the deed.
3. The transferee owns it merely conditionally.
4. The contingent interest is not heritable.
5. A contingent interest is defeated by the death of the transferee before he obtains possession.
6. When an interest is contingent, the transfer is not complete.
7. Illustration:
8. If A and C did not marry before X’s death, and not the contingency contemplated did not, therefore, happen. Hence A and C could not take Rs. 1, 00,000/-.
9. Fulfillment of condition: It is solely depended upon the fulfillment of the condition so that if the condition is not fulfilled, the property would not be passed.
10. The ownership is merely conditional.
11. The investiture fact from which a person derives the right is incomplete.