Skip to main content

Gift Deed

                                        Gift Deed.

According to Section 122 of the Transfer of Property Act, “Gift is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person called the donor, to another person called the donee, and accepted by or on behalf of the donee. As the name says, it is a gift which shall generally involve the transfer of ownership of a property, which may be in the form of a moveable or immoveable, and shall be delivered by one person to the other. Such transactions shall be recorded in a Deed or in a legal document, which shall be executed between the Donor (the person who will deliver the Gift) and the Donee (the Person who will accept the Gift). Most importantly such transfer must be made voluntary.

    Parties in a Gift Deed 

There are two parties in a gift deed, i.e. donor and donee. The donor is the person who gifts his property, and the donee is the person to whom the property is gifted. The donor should have a sound mind and must be competent to enter into agreements at the time of making the gift. A minor is incapable of gifting property as he/she is incapable of entering into agreements. However, the guardian of a minor can accept the gifts given to a minor on his/her behalf. The donor should make a gift without any consideration, i.e. the donor should not receive anything from the donee for making the gift.

Essential Key Elements to Gift Deed 

There are some essential key elements to make a gift deed valid: 

1. The Donor shall transfer the ownership to the Donee; 

2. The property which must be transferable as per the Sec-5 of the Transfer of Property Act, 1882;

 3. The transfer must be done without any compensation or consideration in monetary value, Also such transfer must be made voluntarily, with the free consent of the Donor; 

4. The acceptance must be made during the lifetime of the Donor and while he is still capable of giving.

 5. A gift that is made shall be of any specific movable or immovable property, that must be in existence while transferring the same; 

6. The gift must be tangible;

 7. Delivery of possession shall be the important aspect of transfer of the gifted property; 

8. If at any situation the Donee dies before the acceptance, it shall become void.


Any valid owner of an existing property can gift property. A minor is incompetent to gift a property though a guardian can accept such a gift on his behalf. A movable property, or immovable property, or an existing property that is transferable, can be gifted and require a gift deed. Having a registered gift deed, will help you avoid any litigation that comes up thereafter.


Types of gifts

1. Inter vivos– these gifts were donated during the donor’s lifetime and consists of interests 

of present or future.

2. Causa mortis – These are deathbed gifts, which is a future gift made with the anticipation 

of the donor’s death. This type of gift is not valid unless the donor dies of the impending 

sickness, predicting which he had made the gift.

3.Outright - These types of gifts are made free of any restrictions. 

4. Onerous – Made with the burden or obligation imposed on the donee.

5. Remunerative – Made to compensate for services delivered.

Registration of the Gift Deed 

The gift deed should be registered as per Section 17 Registration Act, 1908 and Section 123 of the Transfer of Property Act. The gift deed shall be made on a stamp paper and to be registered at a sub-register office. The charges of the stamp paper depend on the charges stipulated by the state government. The gift deed shall be registered with the signature from the donor, donee and two witnesses. The registrar will attest the gift deed.


 In case of Minor.

Since contracts with a minor avoid ab into, and a gift deed is a legal contract, Minors are not eligible to be a donor and therefore a gift deed where the minor is the transferrer is not valid in the eyes of law. In a circumstance where the donee is a minor, a natural guardian has the right to accept the gift on his behalf.


Lastly the concept and the subject matter of the gift have been age-old and it was a distinct facet in the Property Law. Then all the rules, regulation and procedure regarding the Gift lay down in the Transfer of Property Act, 1882. There are certain essentials of a gift like: it is a transfer of certain existing moveable or immoveable property made voluntarily and without consideration. It must transfer the ownership of the property, must have been made voluntarily, the donor must be competent and legally eligible to make the transfer and the transferee must accept that transaction and if the donee dies before the acceptance, the gift becomes void.
Labels:

Comments

Post a Comment

Popular posts from this blog

Section 58B of The Advocates Act - Special provision relating to certain disciplinary proceedings

 Section 58B The Advocates Act Description (1) As from the 1st day of September, 1963, every proceeding in respect of any disciplinary matter in relation to an existing advocate of a High Court shall, save as provided in the first proviso to sub-section (2), be disposed of by the State Bar Council in relation to that High Court, as if the existing advocate had been enrolled as an advocate on its roll. (2) If immediately before the said date, there is any proceeding in respect of any disciplinary matter in relation to an existing advocate pending before any High Court under the Indian Bar Councils Act, 1926 (38 of 1926), such proceeding shall stand transferred to the State Bar Council in relation to that High Court, as if it were a proceeding pending before the corresponding Bar Council under clause (c) of sub-section (1) of section 56: Provided that where in respect of any such proceeding the High Court has received the finding of a Tribunal constituted under section 11 of the Indian B
Post a Comment
Read more

Case Laws related to Defamation in favour of ClaimantCase Laws related to Defamation in favour of Claimant. TOLLEY Vs, J.S FRY & SONS LTD – (1931) Facts The defendants were owners of chocolate manufacturing company. They advertised their products with a caricature of the claimant, who was a prominent amateur golfer, showing him with the defendants’ chocolate in his pocket while playing golf. The advertisement compared the excellence of the chocolate to the excellence of the claimant’s drive. The claimant did not consent to or knew about the advertisement. Issue The claimant alleged that the advertisement suggested that he agreed to his portrait being used for commercial purposes and for financial gain. He further claimed that the use of his image made him look like someone who prostituted his reputation for advertising purposes and was thus unworthy of his status. At trial, several golfers gave evidence to the effect that if an amateur sold himself for advertisement, he no longer maintained his amateur status and might be asked to resign from his respective club. Furthermore, there was evidence that the possible adverse effects of the caricature on the claimant’s reputation were brought to the defendants’ attention. The trial judge found that the caricature could have a defamatory meaning. The jury then found in favor of the claimant. Held The House of Lords held that in the circumstances of this case – as explained by the facts – the caricature was capable of constituting defamation. In other words, the publication could have the meaning alleged by the claimant. The Lords also ordered a new trial limited to the assessment of damages. NEWSTEAD V LANDON EXPRESS NEWSPAPER LTD, (1939) Facts: A newspaper published a defamatory article about Harold Newstead. However, another person with this name brought an action in libel. He claimed that the article had been misunderstood as leading to him. The defendant newspaper recognised that they published the article. Also, they denied that they had the intention of being defamatory of him. Consequently, the claimant argued that the newspaper was under a duty. The duty was to give a clear and complete description of the correct person. Moreover, the claimant argued that the defendants were in breach of the duty. Issues: The issue in Newstead v London Express Newspaper, was if the reasonable persons would have understood the words complained of to refer to the plaintiff. Held: The Court of Appeal stated that in accordance with the current law on libel, liability for libel does not depend on the intention of the defamer; but on the fact of the defamation. Accordingly, a reasonable man, in this case a newspaper publisher, must be aware of the possibility of individuals with the same name and must assume that the words published will be read by a reasonable man with reasonable care.

  Case Laws related to Defamation in favour of Claimant.  TOLLEY  Vs,  J.S FRY & SONS LTD – (1931) Facts The defendants were owners of chocolate manufacturing company. They advertised their products with a caricature of the claimant, who was a prominent amateur golfer, showing him with the defendants’ chocolate in his pocket while playing golf. The advertisement compared the excellence of the chocolate to the excellence of the claimant’s drive. The claimant did not consent to or knew about the advertisement.   Issue The claimant alleged that the advertisement suggested that he agreed to his portrait being used for commercial purposes and for financial gain. He further claimed that the use of his image made him look like someone who prostituted his reputation for advertising purposes and was thus unworthy of his status. At trial, several golfers gave evidence to the effect that if an amateur sold himself for advertisement, he no longer maintained his amateur status and might be aske
1 comment
Read more

Rules as to delivery of goods

                             Rules as to delivery of goods Section 2(2) of Sale of Goods Act defines ‘delivery’ as a ‘voluntary transfer of possession from one person to another.’ Thus, if the transfer of goods is not voluntary and is taken by theft, by fraud, or by force, then there is no ‘delivery. Moreover, the ‘delivery’ should have the effect of putting the goods in possession of the buyer. The essence of the delivery is a voluntary transfer of possession of goods from one person to another. There is no delivery of goods where they are obtained at pistol point or theft. 1. Mode of Delivery: According to Section 33, delivery of goods sold may be made by doing anything which the parties agree shall be treated as delivery or which has the effect of putting the goods in the possession of the buyer or of any person authorized to hold them on his behalf. Delivery of goods may be actual, symbolic or constructive. 2. Expenses of Delivery: According to Section 36(5), unless otherwise agree
Post a Comment
Read more