Directions: Read the following passage and answer the question.
The Transfer of Property Act (hereinafter mentioned as TOPA, 1882) was enacted in the year 1882 to regulate the process of transferring of property and various other conditions associated with it. Section 6 of the Act states that property of any kind may be transferred, except as otherwise provided by this Act or by any other law for the time being in force. Therefore, this provision of the Act deals with the demarcation between transferable and non-transferable property. This section has 9 sub clauses, each of which explains the different kinds of transfer of property that can be transferred. Everything else according to the Act can be legally transferred in various means and forms. Property here also means ownership.
The first of these, Section 6(a) titled Spes Succession clause provides that such a property cannot be transferred if there is chance of an heir-apparent succeeding to an estate, a chance of a relation obtaining a legacy on the death of kinsman or any other mere possibility of a like nature.
Section 6(b) provides that a mere right of re-entry for breach of a condition subsequent cannot be transferred to anyone except the owner of the property affected thereby. The right of re-entry being a mere incident of the rights of the owner in leased premises, its transfer is prohibited by Law.
Section 6(e) provides that a mere right to sue cannot be transferred. The word "mere" implies that the transferee acquires no interest in the subject of transfer other than the right to sue as an ostensible owner of the property claimed of which, it may be, the real owner is somebody else. However, property with an incidental right to sue for damages may be transferred.
Section 6(h) provides that transfer of any property that can lead to an act that is against the interest affected thereby, or for committing an act that is for an unlawful object or consideration, or when is transferred to someone who is legally disqualified to be a transferee, then such transfer shall be deemed to be invalid.
Q. Three men obtained a huge sum of money after committing fraud through an insurance scheme. They enter into an agreement to divide it among themselves. The third man does not get his share. He claims that the property was transferred as soon as the amount was obtained. Decide.
Correct answer is option 'C'. Can you explain this answer?