Gift Deed is a contract between donor and the donee which defines simultaneous and reciprocal act of giving and taking.A gift to be valid must be made by a person voluntarily and not under compulsion without any exchange of money.Acceptance of the gift after its execution is a legal requirement and Donee must accept the gift during the lifetime of donor. In case donee fails to accept the gift, it is rendered invalid. The acceptance may be validated by acts such as taking possession of the property. Gift deed is irrevocable post execution.Once the property is gifted, it belongs to the beneficiary and you cannot reverse the transfer or even ask for monetary compensation.No sooner does the donor relinquish his right in the property followed by delivery of possession and acceptance by the donee than a gift is completed.
Revocation Of A Gift:
Section 126 of the Transfer of Property provides for conditions where a gift can be revoked. the following are essential ingredients for revocation of gift:
i) there must be an agreement between the donor and donee that the gift shall be suspended or revoked on the happening of a specified event;
ii) such event must be one which does not depend upon the will of the donor;
iii) the condition as to the suspend or revocation should be agreed to by the donee at the time of accepting the gift. And,
iv) there must exist a ground , except want or failure of consideration, on which a contract may be rescinded.
v) the condition should not be illegal, or immoral and should not be repugnant to the estate created under the gift.
vi) Section 126 is controlled by sec. 10. As such, a clause in the gift deed completely prohibiting alienation is void in view of the provisions contained in sec. 10.
vii) A gift, which was not based on fraud, undue influence or misrepresentation nor was an onerous one, cannot be cancelled unilaterally. Such a gift deed can be cancelled only by resorting to legal remedy in a competent court of law.
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