GIFT UNDER TRANSFER OF PROPERTY ACT

The term "Transfer" as defined under Section 5 of the Transfer of Property Act requires it to be inter vivo which means transfer by one living being to another.

Section 6 puts an embargo, stating that all things are transferrable except those mentioned therein.

Section 7 stipulates that person must be competent to transfer.

Section 122-129 in Chapter VII of the Transfer of Property Act deals with the topic of gift.

Section 122 defines a "gift" as a transfer of certain existing movable or immovable property made voluntarily and without any consideration by one person to another. The person by whom the transfer is made is called "the donor" and the other person who receives the gift is called "the donee".

• Most important term in this definition is the word "existing" i.e no one can transfer any property which might be acquired in future.
• Secondly gift involves no consideration it means it should be given out of love and affection. 
• Gift can also be made for past voluntary service or can be made by way of charity.
• Another characteristic of a gift is that it must be given voluntarily. This is now connected with section 14 of the Contract Act which talks about the free will. It can be further seen in the light that the consent might not be induced by fraud, coercion etc.
• Acceptance of the gift must be made by the donee or by any person on his behalf during the lifetime of the donor and while he is still capable of giving.
• If the gift is accepted during the lifetime of the donor but the donor dies before the registration then also that gift is valid.
• If the donee dies before acceptance, then the gift is void.

Section 123 states that registration is mandatory for transfer of of immovable property, for movable property registration is not mandatory but it should be characterized by the delivery of the same.

Cases when the gift is void

• If it is made for immoral purpose. 
• If the donee dies before acceptance. 
• If donor is incompetent.
• Gift made of property to be acquired in future.

If the gift is onerous, i.e a gift that requires an obligation to be fulfilled, then this obligation cannot be enforced against a minor. But when he attains adulthood he must either accept the burden or return the gift.

Section 126 - The donor and donee may agree that on the happening of any specified event that does not depend on the will of the donor, a gift shall be suspended or revoked. But a gift that is revocable at the mere will of the donor is void.