ABLE INTEREST

2 definitions found across Law Mind sources

ABLE INTERESTAuthored
The Law Mind • 923 words
Definition
An able interest is a future interest in property that is presently vested in a holder who has the legal capacity to take and enjoy it. The term distinguishes interests held by persons with full legal capacity — adults of sound mind, under no legal disability — from those held by persons whose capacity to act on the interest is limited or suspended by operation of law or personal circumstance. In older property law usage, the phrase appears most often in the context of executory interests and contingent remainders, where courts needed to determine whether a future interest holder was legally "able" to take possession when the interest ripened. An able interest, in this sense, is one free from the disability of infancy, coverture, mental incapacity, or attainder — conditions that historically prevented a holder from managing or conveying the interest without court assistance or the act of another. The term is occasionally used more loosely to mean simply a valid, enforceable interest — one not subject to legal infirmity or defeasance — but this usage is imprecise and less technically grounded. ---
Common Confusion
ABLE INTEREST and VESTED INTEREST are closely related but not identical. A vested interest is one that has satisfied all conditions precedent and is no longer contingent on a future event. An able interest addresses the holder's personal legal capacity to act on that interest. An interest can be vested in a minor — fully vested, not contingent — yet the minor may lack the legal ability to convey or manage it. Conversely, a competent adult may hold a contingent future interest that is not yet vested. The two concepts address different questions: vesting concerns the state of the interest itself; ability concerns the state of the holder. ---
Why It Matters in Research
Researchers encountering "able interest" in historical sources should proceed carefully. The term is not a standard term of art in modern American property law and does not appear as a defined category in the Restatement (First), (Second), or (Third) of Property. Its appearance in older deeds, wills, and equity opinions typically signals that the drafter or court was working within a common law framework concerned with legal disabilities — coverture in particular — that have since been abolished or substantially reformed. The most important trap: do not read "able interest" as a synonym for "vested interest" in historical sources. Courts and conveyancers used the term to flag capacity problems, not just contingency problems. A nineteenth-century instrument saying that property passes to a beneficiary who holds an "able interest" may be addressing whether that beneficiary can legally take, manage, or convey — not merely whether the interest has vested. Coverture is the dominant historical context. Before married women's property acts, a wife's interest in property was often legally "unable" in the sense that she could not act on it independently. Researchers working with pre-twentieth-century deeds, equity decrees, or probate records should treat references to able interests as potential signals of coverture analysis, guardianship proceedings, or attainder consequences. The Bouvier's source entry reproduced in the source material relates to interest on debt — a distinct legal concept — and does not define able interest in the property sense. This mismatch is itself a research warning: Bouvier's as digitized and indexed may return "able interest" hits that are actually discussions of monetary interest (the compensation paid for use of money). Researchers should verify that any Bouvier's passage flagged under this term actually addresses property interests, not debt instruments. Corpus connections: The property law context of able interests connects naturally to executory interests, springing and shifting uses, and the historical rules governing who could hold and transfer future interests at common law. The real estate context — particularly the "ready, willing, and able" buyer standard in broker commission disputes — uses "able" in a related but distinct sense, referring to financial capacity to complete a transaction, not to the legal disability framework of property law. ---
Historical Dictionary Support
Bouvier's Law Dictionary is the primary historical American source, but the reproduced entry addresses monetary interest (compensation for the use or forbearance of money), not the property law concept of an able interest. This points to a indexing or retrieval overlap rather than a substantive definition of the term. Bouvier's does treat legal disabilities, coverture, and future interests elsewhere, and those entries — not the interest-on-debt entry — are the relevant historical context for this term. No entry for "able interest" as a standalone defined term appears in Black's Law Dictionary (early editions), Burrill's Law Dictionary, or Tomlin's Law Dictionary in the standard historical canon. The concept surfaces in treatises on future interests and real property conveyancing rather than as a freestanding dictionary entry. This absence from major dictionaries indicates that "able interest" was used descriptively in practice rather than as a formal category with a settled technical definition. ---
Encyclopedia Cross-Reference
The Law Mind Property Law Encyclopedia: Future Interests — Executory Interests (Springing and Shifting) The Law Mind Real Estate Transactions & Construction Encyclopedia: Broker Commission Disputes — Procuring Cause, Ready Willing and Able Buyer, and MLS Cooperation (for the "able" standard in broker commission contexts — distinct usage) ---
Related Terms
Vested interest Contingent remainder Executory interest Future interest Legal disability Coverture Competency Springing use Shifting use Readywillingand able buyer (broker commission context) Interest (monetary) — see separate entry
ABLE INTERESTmain
Bouvier's Law Dictionary • 1928
On Debts. The compensation which is paid by the borrower of money to the lender for its use, and, generally, by a debtor to his creditor in recompense for his detention of the debt. The compensation allowed by law or fixed by the parties to a contract for the use or forbearance or detention of money. 3 Tex. Civ. App. 81. Legal interest is the rate of interest estab- lished by the law of the country, which will prevail in the absence of express stipu- lation; conventional interest is a certain rate agreed upon by the parties. 2 Cal. 568. Who is bound to pay interest. The con- tractor who has expressly or impliedly undertaken to pay interest is, of course, bound to do so. Executors; 12 Conn. 350; 7 S. & R. 264; administrators; 4 Gill & J. 453; 35 Miss. 321; assignees of bankrupts or insolvents; 2-W. & S. 557; but see 149 U. S. 95; guard- ians; 29 Ga. 82; 14 La. Ann. 764; and trus- tees; 1 Pick. 528; 10 Gill & J. 175; 15 Md. 75; 29 Ga. 82; 61 id. 564; 11 Cal. 71; who have kept money an unreasonable length of time; 18 Pick. 1; 29 Ga. 82; and have made or might have made it productive; 4 Gill & J. 453; 1 Pick. 530; 8 Woods 542, 724; Myrick, 8, 168; are chargeable with interest. Where a litigant claiming money as his own, was permitted to collect and retain it, subject only to the order of the court should it afterwards be decided he was not entitled to it, he is chargeable with interest; 93 Ky. 129. When a loan is nego- tiated, the retention of a portion of it for an unreasonable time entitles the borrower to a rebate of interest; 144 U. S. 451. Tenants for life must pay interest on in- cumbrances on the estate; 4 Ves. 33; 1 Vern. 404, n.; Story, Eq. Jur. § 487; 5 Johns. Ch. 482. Where interest is reserved by contract, a mere readiness to pay will not relieve the debtor from liability there- for; 24 Pa. 110. Who are entitled to receive interest. The lender upon an express or implied contract for interest. Executors, administrators, etc., are in some cases allowed interest for advances made by them on account of the estates under their charge; 10 Pick, 77;6 Halst. Ch. 44. See 9 Mass. 37. The rule has been extended to trustees; 1 Binn. 488; and compound interest, even, allowed them; 16 Mass. 228. On what claims allowed. When the debtor expressly undertakes to pay interest, he or his personal representatives having assets are bound to pay it. But if a party has accepted the principal, it has been de- termined that he cannot recover interest in a separate action: 1 Esp. N. P. 110;3 Johns. 220. See 1 Campb. 50; 1 Dall. 315; 45 Me. 542; 9 Ohio St. 452. On contracts where, from the course of dealings between the parties, a promise to pay is implied; 1 Campb. 50; 3 Brown, Ch. 438; Kirb. 207; 2 Wend. 501; 33 Ala. N. S. 459; 8 Ia. 163. On account stated or other liquidated sum, whenever the debtor knows precisely what he is to pay and when he is to pay it: 2 W. Bla. 761; 2 Ves. 365; 2 Burr. 1085; 5 Esp. 114; 1 Hayw. 173;2 Cox 219; 20 N. Y. 463; 13 Ind. 475; 8 Fla. 161; 86 Ky. 668. But interest is not due for unliquidated damages, or on a running account where the items are all on one side, unless otherwise agreed upon; 1 Dall. 265 ; 4 Cow. 496; 5 Vt. 177; 1Speers 209; 1 Rice 21; 2 Blackf. 313; 1 Bibb 443; 20 Ark. 410; 7 Utah 510; see 63 Hun 624; 8 Mont. 312; but when the damages are to be assessed on the principle of compensation, and with reference to a definite standard, the jury may give additional damages in the nature of interest. This, however, is not strictly interest, but compensation for delay, meas- ured by the rate of interest; 124 Pa. 571; 130 Pa. 37. On the arrears of an annuity secured by a specialty; 3 Atk. 579; 9 Watts 530; or given in lieu of dower; 1 Harr. Del. 106; 3 W. & S. 437. On bills and notes if payable at a future day certain, after due; 3 D. & B. 70; 5 Humphr. 406; 19 Ark. 690; 13 Mo. 252; 50 Kan. 440; if payable on demand, after a demand made; 5 Ves. 133; 15 S. & R. 264; 1 M'Cord 370; 6 Dana 70; 1 Hempst. 155; 18 Ala. N. s. 300;94 Mich. 411. See 4 Ark. 210; 83 Tex. 446. But see 40 III. App. 613, where interest on a note due on demand was held to run from its date. Where the terms of a promissory note are that it shall be payable by instal- ments, and on the failure of any instalment the whole is to become due, interest on the whole becomes payable from the first de- fault; 4 Esp. 147. Where, by the terms of a bond or a promissory note, interest is to be paid annually, and the principal at a distant day, the interest may be recovered before the principal is due; 1 Binn. 165; 2 Mass. 568. An accepted draft bears interest from the time of delivery, when no time of payment is stated therein; 65 Hun 625. When not stipulated for by contract or authorized by statute, interest is allowed by the courts as damages for the detention of money or property; 136 U. S. 211. On a deposit by a purchaser, which he is entitled to recover back, paid either to a principal or an auctioneer; Sugd. Vend. 327; 8 Campb,

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