The Doctrine of Election is based on the principle of fairness, where a person cannot accept the part of a legal document that benefits them while rejecting the part that goes against them. In simple terms, one cannot “approve and disapprove” at the same time. This principle applies to all types of legal instruments, whether it is a will, deed, or any transaction related to movable or immovable property.
Meaning of Election
The term ‘election’ means choosing between two alternative or conflicting rights. According to Section 35 of the Transfer of Property Act, a person must choose whether to:
- Accept the benefit under the transaction and give up their right to the property, or
- Retain the property and give up the benefit conferred.
Key Conditions for Election
To apply the doctrine of election, the following conditions must be met:
- The transferor transfers a property that does not belong to them.
- The transferor offers some benefit to the actual owner of the property in return.
- Both the transfer of property and the benefit are part of the same transaction.
If the actual owner refuses to accept the transfer and gives up the benefit, the benefit returns to the transferor as if it was never given.
Rights of a Disappointed Transferee
If the owner rejects the transfer, the transferee is considered disappointed. In such cases, the transferee has certain rights:
- If the transfer was without consideration (gift): The transferee can claim reasonable compensation from the transferor’s estate if the transferor dies or becomes incapable of making another transfer.
- If the transfer was for consideration: The transferee is also entitled to compensation regardless of whether the transferor is alive or dead at the time of election.
Mode of Election
Election can be made in two ways:
- Express Election: When the owner clearly states their choice through specific words.
- Implied Election: When the owner’s actions or conduct indicate that they have accepted the benefit.
Presumption of Election
An implied election is presumed when:
- The owner enjoys the benefit for two years without expressing dissent.
- The owner consumes or exhausts the benefit.
If the owner’s actions make it impossible to return to the original state, it is presumed that they have knowingly accepted the benefit.
Requisition to Elect
If the owner does not make an election within one year, the transferee can ask them to make a decision. If the owner still fails to decide within a reasonable time, they are deemed to have elected in favor of the transfer.
Suspension of Election
When the owner is legally incapable (due to minority, mental incapacity, etc.), the election is postponed until:
- The disability ends, or
- A competent authority (like a guardian) makes the election on their behalf.
Judicial Interpretation
The House of Lords in Cooper v. Cooper explained the doctrine of election by stating that if a person takes a benefit under an instrument, they are legally bound to give full effect to that instrument. Even if the instrument involves something beyond the transferor’s authority, the person receiving the benefit is obligated to carry out the intention of the instrument to its full effect.
In summary, the Doctrine of Election ensures that a person cannot act inconsistently by accepting benefits and rejecting obligations under the same transaction, thereby maintaining fairness and consistency in property law.
