Concept of Gift under Transfer of Property Act
Concept of Gifts under TPA
Understanding Concept of Gift under the Transfer of Property Act, 1882
What Makes a Valid Gift?
Under Section 122, a gift is the voluntary transfer of property without payment. For a transfer to be legally considered a gift, three essential conditions must be met.
1. Voluntary Transfer
The donor must give the gift of their own free will, free from any force, fraud, or undue influence.
2. No Consideration
The donor cannot receive anything of monetary value in return. It must be a one-way transfer.
3. Acceptance by Donee
The person receiving the gift must accept it during the lifetime of the donor for it to be valid.
Types of Gifts Recognized by Law
The law distinguishes between different kinds of gifts based on their nature and the obligations they might carry. Each type has unique characteristics and legal implications.
Inter Vivos
The standard gift made between two living people, which takes effect immediately.
Onerous Gift
A gift that comes with an attached burden or obligation, such as pending taxes. The donee must accept the gift and the burden together.
Universal Donee
A gift of the donor’s entire property. The donee becomes liable for all the donor’s debts up to the value of the gifted property.
Donatio Mortis Causa
A “death-bed gift” of movable property made in anticipation of death. It is revoked if the donor recovers.
The Gifting Process: A Flowchart
The legal process for making a gift varies significantly depending on whether the property is movable (like cash or a car) or immovable (like land or a house).
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By Registered Instrument
Comparing Procedural Complexity
This chart visualizes the number of mandatory legal steps required to complete different types of property transfers, highlighting the rigorous process for immovable property gifts.
Understanding Actionable Claims
An actionable claim is a right to claim something through legal action. It’s a type of intangible property that can be transferred. The most common examples fall into two categories.
Unsecured Debts
A right to recover a debt that is not secured by any mortgage or pledge of property, like money owed by a friend.
Beneficial Interest
A right to claim movable property not in one’s possession, such as the right to the winnings from a lottery ticket.
How to Transfer an Actionable Claim
Registration is not necessary. While notice to the debtor is not required for validity, it is highly recommended to ensure the debtor pays the new creditor.
