GIFTS

UNIT V
INTRODUCTION
 Gift is the gratuitous transfer of ownership in some existing property made voluntarily

by one person to another, where the sender willingly transfers his/her property to the
receiver without any compensation i.e., without considering any monetary value .
 The transferor is called donor and the transferee is called done

 For example – a sum of Rs 5100/- given at the wedding anniversary given by Suman to

her friend Rekha. Here Suman is donor and Rekha is donee

 The gift can be of both movable as well as immovable existing property.

 . Gift may, therefore, be either inter vivos or, testamentary.

 The gifts in India are governed by chapter VII (section 122 to 129) of Transfer Of

Property Act , 1882

POINTS OF CONSIDERATION
1. Both the parties must be alive at the time of making the gift.

2. while making the gift it is permissible to make conditions

3. Property must be transferable property within the meaning of Sec-6

4. Gift is an exception to consideration, to be made out of Love & natural affection

5. Donor must be competent to contract, and he must have title to the property or authority to transfer

the property, if it

6. The acceptance of gift should take place during the lifetime of the donor.

7. Gift should be accepted by the donee or someone on his behalf.

8. A gift may be made to a minor.

9. A gift cannot be made to the public at large.

DEFINATION OF GIFTS ( SECTION 122)

According to section 122 of the act , Gift is the transfer of certain existing
movable or immovable property made voluntarily and without consideration, by one
person, called the donor, to another, called the donee, and accepted by or on behalf
of the donee.
Acceptance when to be made- Such acceptance must be made during the lifetime
of the donor and while he is still capable of giving.
If the donee dies before acceptance, the gift is void.
ESSENTIALS
1. There must be transfer of ownership – The property must be transferred
absolutely to the donee. Though certain restrictions can be imposed but they
must not be forbidden by law

2. The ownership must relate to a property in existence - Gift must be made of

existing movable or immovable property capable of being transferred. Future
property cannot be transferred. The share obtained after partition of the joint
family property can be gifted. Even a gift of property that is obtained after a
preliminary decree of partition is passed by the court is valid.

3. The transfer must be without consideration- The word ‘consideration’ refers to

monetary consideration and does not include natural love and affection. If the
consideration is a nominal amount of money or the property is grossly undervalued
yet the transfer would not be a gift but a sale. Gifts in lieu of expectation of spiritual
and moral benefit or a promise to look after the donor in her old age or through our
life are transactions without any consideration. .
4. It must have been made voluntarily- The offer to make the gift must be
voluntary. A gift therefore should be executed with free consent of the donor. This
consent should be untainted by force, fraud or undue influence.
5. The donor must be a competent person: Donor is the person who makes the gift.
He must have therefore attained the age of majority, possess a sound mind and should
not be otherwise disqualified. Section 7 of this Act provides that only such persons
can effect a transfer of property who are competent to contract. The result is,
therefore, that a minor cannot make a gift of his properties. According to Halsbury’s
Laws of England , persons in fiduciary positions, e.g., trustees cannot make gifts of
the property vested in them on behalf of others unless they are authorised to do so
6. The transferee must accept the gift: The gift must be accepted
by the donee himself. Acceptance can be validly given by a minor donee
himself or by his mother or guardian or by an agent is case of a deity.
7. Acceptance must be made during the lifetime of the donor and
while he is capable of giving. According to Section 122 if the donee
dies before the acceptance of gift the gift is void.
K INDS O F GIFT
1. Void Gifts -- The following gifts are declared void
• Gift made for unlawful purpose
• Gift subject to condition, and the fulfilment of which is impossible
• If donee dies before acceptance
• Gift by a person incompetent to contract

2. Universal Donee - A Universal Donee is one to whom all the properties of donor have been
given and is liable for all the debts and liabilities of the donor at the time of the gift.The object of
this concept is to protect the interest of the creditors of donors.

3. Donatio Mortis Causa - When a gift is made by a donor, when he was in critical
condition, likely to cause his death, it is called ‘Donatio Mortis Causa’. It means donation
made out of death, and heace it is called ‘Death Bed Gift’
4. . Onerous gift

Single transfer
Separate transfers

1. Several things are

1. Several things are transfer
transfer to same person
2. One thing burdened by to same person
obligation
2. One thing burdened by obligation
3. Others no burdened
4. Either acceptance of whole 3. Others not burdened
transfer or rejection of whole
4. Liberty to reject one or accept
transfer
others
TRANSFER HOW EFFECTED (section 123)
Section 123 of the act deals with formalities necessary for completion of a gift.

Unless these condition are satisfied, the legal title does not pass on to done and
gift is unenforceable.
According to section 123, Transfer of immovable property through gift will be

effective only by a registered instrument which is signed by or on behalf of the

donor, and it should be attested by at least two witnesses . But, if the instrument is
not registered then the title of the immovable property to the donee cannot pass .
However, transfer of movable property will be effective either by the registered

instrument which is signed by or on behalf of the donor and attested by at least two
of the witnesses or merely delivery of possession is sufficient. And such delivery
will take place in the same way as the goods sold may be delivered.
Essentials Of Transfer of immovable property through gift

A gift of immovable property to be made through registered

document only
A Gift of piece of land valuing less than rupees 100 must also be

registered
It must be executed by or on behalf of the donor, and it should

be attested by at least two witnesses

Ownership needs to be transferred , possession can be
transferred later on
A gift may be registered even after the death of the donor .
GIFT OF EXISTING AND FUTURE
PROPERTY (SECTION 124)
 According to section 124 , ‘A gift comprising both existing and future

property is void’ as to the latter.

 This section makes it clear that gift of future property is void.

 Where the gift is made comprising two properties , one existing and

one future. The gift of existing property will be enforceable by law

whole the later becomes void
GIFT TO SEVERAL OF WHOM ONE DOES NOT
ACCEPT (SECTION 125)

According to section 125 , ‘A gift of a thing to two or more donees, of whom one

does not accept it, is void as to the interest which he would have taken had he
accepted.’
Gifts may be made to two or more persons jointly

The acceptance by all the donees is necessary for the validity of gift

If one donee does not accept the gift ,the gift on his part shall become void and it

wont be transfer to another donee and will revert back to donor

Gift is personal to person to whom it is made , if it is not accepted by donee , it

cannot ne transferred to other donee . However, the gift made to two persons
jointly with right to survivorship is valid
CONCLUSION
The conception of the term gift and subject matter of gift has been an age old
and traditional issue which has developed into a distinct facet in property law.
The Transfer of Property Act, 1882 lays down all the rules, regulations and
procedures relating to gift and how its transfer is made. The most important
essential of the gift is its acceptance i.e. an acceptance of gift must be made
during the lifetime of the donor and while he is capable of giving. According to s.
122 if the donee dies before the acceptance of gift the gift is void. A deed of
gift once executed and registered cannot be revoked, unless the mandatory
requirement of Section 126 of Transfer of Property Act, 1882 is fulfilled
Thank you