Kinds of Gifts

1. Void gifts

The following are included under the category of void gifts, if –

1. It is for unlawful purposes. (S. 6)
2. It is made upon a condition, the fulfilment of which impossible or forbidden by law.(S. 6)

3. It is by a person incompetent to contract.
4. The donee dies before acceptance.
5. It comprises of both the existing and future property is void as to the future property.

Section 2(d) of the Indian contract act, 1872 provides that past illicit cohabitation cannot be the consideration for an agreement or transfer of property. Where a gift is made for such purpose, the gift is void.

2. Onerous gifts (S. 127)

A gift is said to be onerous when it is accompanied with a burden or obligation. This section is based on the maxim qui senti commodum sentire debetet onus which means that he/she who receives advantage must also bear the burden.

The first paragraph of section 127 provides that where 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 burdened by an obligation, the donee can take nothing by the gits unless he/she accepts it fully. Here the following elements are essentials –

1. It must be in the form of a single transfer;
2. To the same person;
3. Of several things (properties);
4. Of such thing only one is burdened with obligation and others are not.

When such conditions are present, the donee will have to accept the gift fully. He/she cannot accept the benefits of gift only and reject the burdens or obligation. This provision provides that the donee may either accept the full gift or reject that, partial acceptance is not allowed.

Illustration (a)

A shares in X, prosperous joint-stock company, and also shares in Y, a joint-stock company in difficulties. Heavy calls are expected in respect of the shares in Y. A gives B all his/her shares in joint stock companies. B refuses to accept the shares in Y. he/she cannot take the shares in X.

Second paragraph provides that where a gift is in the form of two or more separate and independent transfer to the same person of several things, the donee is at liberty to accept one of them and refuse the others, although the Former may be beneficial and the latter onerous. Thus, if a gift is made accept the beneficial one and reject the onerous property. Here the gifts are separate and do not form the part of the same transaction.

Illustration (b)

A, having a lease for a term of years of house at a rent which he/she and his/her representatives are bound to pay during the term, and which is more than the house can let for, gives to B the lease, and also, as a separate and independent transaction, a sum of money. B refuses to accept the lease. He/she does not by this refusal forfeit the money.

III. Suspension or revocation of gifts (S. 126)

A gift is a transfer of ownership without consideration. A seed of gift once executed and registered cannot be revoked unless it can be shown that the mandatory requirements of the section were not complied with.

It can be made subject to a certain condition. It is necessary that these conditions must be valid conditions according to this Act.

A gift once made is irrevocable, except in the following two cases provided by this section –

It is revocable if the donor and the donee have agreed that on the happening of a specified event (not depending upon the will of the donor), the gift should be suspended or revoked.

It may also be revoked in any of the case (save want or failure of consideration) in which, if it were a contract, it might be rescinded.