OF GIFTSCentral

Section 122 of The Transfer of Property Act, 1882

Gift is the transfer of certain existing moveable or immoveable 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 till capable of giving, If the donee dies before acceptance, the gift is void.

Summary

A gift is defined as a voluntary transfer of existing movable or immovable property made without any financial or other consideration.
The person who transfers the property is called the donor, and the person who receives it is called the donee.
To make a gift legally complete, it must be accepted by the donee or by someone acting on the donee's behalf.
The donee must accept the gift during the lifetime of the donor.
At the time of acceptance, the donor must still be mentally and legally capable of giving.
If the donee dies before accepting the gift, the entire transaction becomes void and has no legal effect.

Practical examples

1Robert wants to show appreciation to his daughter Clara. He voluntarily transfers ownership of his existing residential apartment to her without taking any money or receiving anything in return. Clara signs the transfer document to accept the apartment while Robert is alive and well. This is a valid gift.

2David decides to gift a gold necklace to his nephew Eric. David writes a letter declaring the gift, but before Eric can receive or accept the necklace, Eric tragically passes away in an accident. Because the donee died before accepting the gift, the transaction is completely void, and the necklace remains part of David's estate.

FAQ

1. What is the definition of a gift under the Transfer of Property Act 1882 Section 122?

Under Section 122 of the Transfer of Property Act, 1882, a gift is a voluntary transfer of existing movable or immovable property made without consideration by a donor to a donee, which is accepted by or on behalf of the donee.

2. When must a gift be accepted by the donee under Section 122 of the Transfer of Property Act 1882?

Under Section 122 of the Transfer of Property Act, 1882, the donee must accept the gift during the lifetime of the donor and while the donor is still capable of giving.

3. What happens if the donee dies before accepting a gift under Section 122 of the Transfer of Property Act 1882?

Under Section 122 of the Transfer of Property Act, 1882, if the donee dies before accepting the gift, the gift becomes completely void and has no legal effect.

Test yourself

Q1.Under Section 122 of the Transfer of Property Act, 1882, which of the following is an essential requirement for a transfer to be legally classified as a gift?

Q2.Under Section 122 of the Transfer of Property Act, 1882, what is the legal consequence if the donee passes away before accepting the gift?

Q3.Under Section 122 of the Transfer of Property Act, 1882, which of the following is a mandatory condition regarding the donor at the time the donee accepts the gift?

Q4.Under Section 122 of the Transfer of Property Act, 1882, what kind of property can be the subject of a valid gift?

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