A PROJECT ON

GIFTS
BY
KARAN DOGRA(05616503811)
UDHAM SINGH TOMAR(04416503810)
PURPOSE
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 face in property law.
Different aspects related to gift in property act and
its implications has been the major subject matter of
this project .

Gift
Gift is the transfer of some existing moveable or
immoveable property made voluntarily and without
consideration by one person called the donor to
another called donee , accepted by or on behalf of the
donee.
The term gift is different as used in transfer of
property act as used in mohammedan law. In
mohammedan law , a gift is transfer of property or
right by one person to another according to the
provisions of mohammedan law
a)Hiba , an immediate and unconditional transfer of
ownership of some property.

Elements of gift
S122 of transfer of property act
1) Absence of consideration
2) Transfer of ownership
3) the donor must be a competent person
4) subject matter(the ownership must relate to a

property in existence)
5) Transfer must be made voluntarily
6) The transferee (donee) must accept the gift
Only requirement of valid gift is acceptance .

The donor is the person who makes the gift.

Donors Qualifications
s.7 of Transfer of property act
Provide that only such person can effect a transfer of
property who are competent to contract.
A minor being incompetent to contract is incompetent to
transfer , thus gift by a minor would be void.
Soundness of mind , majority and should not be otherwise
disqualified.
Are only qualifications required for making a gift. A valid
gift must be made by a person with his free consent and
not under compulsion.
An insolvent donor is not competent to contract.

Gift may be a Gift inter vivos or Gift testamentary

A gift takes place between living person (inter vivos)
Testamentary gift is termed as will and takes place only
after the death of the donor.
A man may lawfully gift someone during his lifetime or he
may give it away to someone after his death. The first is
called disposition inter vivos and second a testamentary
disposition .
Donee
The donee is the person who accepts the gifts by or on
behalf of the person who is not competent to contract .
A minor therefore may be a donee but if the gift is onerous
the obligation cannot be enforced against him . Gift canot
be made to the public or society at large.
The acceptance may be made during the life time of the
donor and while he is capable of giving it.

Onerous gifts;s.127 of Transfer of property act :

where a gift is in the form of a single transfer to
the same person of several things of which one
is, and other is not, burdened by an obligation ,
the donee can take nothing by the gift unless he
accept it fully.
Principle is that
who accept the benefit of a transaction must
also accept the burden of the same
Illustration.
A has a share in x , a prosperous company, and
also shares in y ,a company in difficulties .
Heavy calls are expected in respect of the share
in y. A gives B all his shares in companies B
refuses to accept the share in y, he cannot take

Subject matter of gift must be some moveable or

immoveable property like land , goods , actionable items .
It must be transferable under s.6 . It cannot be a future
property .
Conditions for valid gift under s.122 and s.123 of transfer
of property act
Gift under s.122 : gift is the transfer of some existing
moveable or immoveable property made voluntarily and
without consideration , by one person called donor , to
another called donee.

Voluntarily : it denotes the gift must be made with free

consent
without consideration.
A gift is a transfer . Complete absence of monetary
consideration is the main hallmark which separates gift
from grant.
When acceptance to be made: acceptance should be made
in the lifetime of the donor .
Acceptance : the gift must be by the donee or by a person
on his behalf . Mere silence may sometimes indicate
acceptance .
s.123 Transfer how effected: For the purpose of making a
gift of immoveable property, the transfer must be effected
by a registered instrument signed by or on behalf of the
donor ,and attested by at least two witnesses.
For the purpose of making a gift of moveable property, The

Essentials OF VALID TRANSFER

There are three essentials for a valid transfer
a) Declaration of gift by donor
b) Acceptance of gift , express or implied , by the donee
c) Delivery of possession of the subject of gift
Under s.124
A gift comprising both existing and future property is void
as to the latter.
Gift of future property : there can be no gift of future
property A gift of future property is a mere promise which
cannot be enforced and is therefore void

WHEN A GIFT MAY BE SUSPENDED OR REVOCKED

Section 126 of the Transfer of Property provides for
conditions where a gift may be revoked. the following
are those conditions
(1) That the donor and donee must have agreed that
the gift shall be suspended or revoked on the
happening of a specified event;
(2) such event must be one which does not depend
upon the donor's will; (3) the donor and donee must
have agreed to the condition at the time of accepting
the gift; and
(4) the condition should not be illegal, or immoral and
should not be repugnant to the estate created under
the gift. Section 126 is controlled by sec. 10. As such,
a clause in the gift deed totally prohibiting alienation is
void in view of the provisions contained in sec. 10.