A Contingent Interest is one in which neither any proprietary interest nor a right of enjoyment is given at present, but both depend upon future uncertain events.
A contingent interest is solely dependent upon the fulfillment of a condition, so that in case of non- fulfillment of the condition, the interest falls through.
If the transferee dies before obtaining possession, the contingent interest fails, and the property reverts to the transferor.
Conditional transfers means transfers to which the conditions are attached. A condition is a provision which makes the existence of a right dependent on the happening or non happening of a thing. Conditions are of three kinds, 1. Condition precedent 2. Condition subsequent 3. Conditional limitations
1. A condition precedent is one which delays the vesting of a right until the happening of an event.
2. A condition subsequent (also called as condition of defeasance) is one which destroys or divests the right upon the happening event.
3. A conditional limitation is a combination of a condition precedent and a condition subsequent; it is one containing a condition which (i) divests an estate that has vested, and (ii) vests it in another person. As regards the prior interest, it is a condition subsequent, but as regards the ulterior interest, it is a condition precedent. This would happen when, for instance. A gives a house to his daughter B, with a condition that if she marries a person not approved by him, the house would go to his son, C. Here, as far as B is concerned, it is a condition subsequent, but as far as C is concerned, it is a condition precedent.
I hope you understand.