Modes of Gift under Transfer of Property Act, 1882

Transfer how effected

Section 123 of the Transfer of the Property Act provides that the transfer of making a gift of any property how effected & in case of making a gift of immovable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor which is attested by at least two witnesses.

In the case of making a gift of movable property, the transfer may be effected either by a registered instrument signed as aforesaid or by delivery.

This delivery may be made in the same way as goods sold may be delivered.

A gift deed registered by the donee after the death of the donor without the consent of the legal representative is valid. Since it is not necessary that the deed should be registered by the donor himself.

Gift of Movable Property

The registration is optional in the gift of movable property; the other mode of transfer is delivery of possession.  An actionable claim is an incorporeal movable property that is not capable of being transferred through the delivery of possession.

Void Gifts

Following gifts are void:

• A gift comprising both existing and the future property is void as to the latter (section 124).
• 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 (section 125).
• A gift made for an unlawful purpose. A gift in consideration of past illicit cohabitation said to be immoral and invalid.
• A condition-based gift, the fulfillment of which is impossible or forbidden by law.
• Where before acceptance the donee dies.
• Gift by a person incompetent to contract.
• Under an agreement between the parties is revocable wholly or in part at the mere will of the donor is void wholly or in part as the case may be.

When gift may be suspended or revoked

Suspension and revocation of the gift provided under section 126 of the Act and is when the donor and donee may agree that on the happening of any specified event. The same does not depend on the will of the donor; but a gift which the parties agree shall be revocable wholly or in part, at the mere will of the donor & is void wholly or in part, as the case may be.

It can be irrevocable except by the two methods:-

·Revocation by an Agreement

A gift is revocable, it should be suspended or revoked if both the parties i.e. the donor and the donee; have agreed that on the happening of a specified event and not depending upon the will of the donor. It is important that the parties must have agreed to the condition at the time of the gift, for a gift that is complete and absolute at the time it is made cannot be modified by a condition subsequently added.

Revocation on the grounds of undue influence, fraud, etc.

A gift may also be revoked in any of the cases in which if it were a contract, As per the Indian contract act, all the essentials of a valid contract should be fulfilled. It might be rescinded if any essential is not fulfilled.

Onerous gifts

Section 127 provides that if a gift is in the form of a single transfer to the same person of several things of which one is, and the others are not an obligation, the donee can take nothing by the gift unless he accepts it fully

If a gift is in the form of two or more separate and independent transfers to the same person of several things, the donee is at liberty to accept one thing among them and refuse the others, although the former may be beneficial and the latter onerous.

It is based on the principle that (Qui senti commodum, debt et sentire onus). The rule is similar to the doctrine of election, as the donee has to elect to accept the whole gift or nothing.

The right to repudiate the gift retains on attaining the age of majority if the onerous gift is made to a minor and such donee accepts the gift. On attaining majority he may accept or reject the gift and the donor cannot reclaim the gift unless the donee rejects it on becoming a major.

Universal donee

As per section 128 of the Act, he is one to whom the donor’s whole property is given. He becomes liable for all the debts and liabilities of the donor. But to the extent of the property comprised in the gift.

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