Cancellation of Gift Deed Format
Cancellation of Gift Deed Format What happens if a person presents his property to another and wants to take it back later on? Is it possible for such a person to do so? Does the person to whom the property is gifted have a say in this matter? Can he refuse? The answer to the last two questions is “Yes”.
Sections 122 to 129 of the Transfer of Property Act, 1882, deal with the gifting of property. Section 122 defines gifts as the transfer of certain existing moveable or immovable 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.
Accordingly, the donor cannot willfully decide to revoke the gift on his own once the gift has been made voluntarily. For instance, if a person A makes a gift of his flat to person B voluntarily and without consideration, he cannot at a later day decide to revoke his gift on a whim.
Nevertheless, there are a number of factors to consider here. If the gifting is not voluntary and is made under coercion, fraud, undue influence, misinterpretation or mistake, then it does not fall in the definition of gift according to law. Therefore, the donor can revoke such a ‘gift’.
In addition, if a gift is given under considerations of reward, favour or compensation, or promise of such in return, it goes against the very definition of the gift itself. Therefore, such a gift is also void. FDI POLICY
One crucial factor in the gifting procedure is that a gift must be accepted by a donee during the lifetime of the donor. If the donor is not alive when the gift is being made then such a gift cannot be accepted.
This also applies to the donee. If the donee dies before the acceptance is made, the gift is void.
Furthermore, the donor should be capable of gifting the property in order for it to be accepted. That means the said gift should be under the control of the donor at the time of gifting.
If the gift is made voluntarily and without consideration, with both the donor and the donee being alive at the time of gifting and acceptance, and the donor being in control of the gift, such a gift is a valid gift and donor on his own cannot revoke it. Such a gift can only be revoked if an agreement exists between the two parties at the time of gifting that the gift would be revoked if a certain condition is not fulfilled.
Section 126 of the transfer of property act, 1882 deals with the conditions under which the revocation of a gift may take place. For instance, if A gifts his house to B on an agreement that A would reside in a part of the property during his lifetime, and B fail to honour this agreement, A can lawfully suspend or revoke the gift.
However, the specified event should not depend solely on the will of the donor. It should be beyond his control. In the above example, the agreement calls for the donee to fulfil the condition specified. Whether he does it or not is beyond the control of the donor.
Apart from these conditions, a valid gift cannot be revoked as per the provisions of Section 10 of the Transfer of Property Act, 1882 read with section 126 of the same Act. Further, the gifting of property by the means of the gift is complete and binding on the parties concerned since any clause in the gift deed, which prohibits alienation, is void in law.