Meaning and Concept
An onerous gift is a type of gift made by a donor to a donee subject to a condition that the donee must perform certain obligations or bear liabilities in return for receiving the gift. Unlike a gratuitous gift, which is made without consideration, an onerous gift imposes a burden on the donee, such as maintaining a property, paying off debts, or fulfilling contractual duties. The concept is governed by Sections 122–126 of the Transfer of Property Act, 1882, which regulate gifts and their acceptance. The essential idea is that while the gift is voluntarily transferred, it carries responsibilities, creating a legal obligation on the donee. Onerous gifts are commonly used in family settlements and charitable donations where the donor wishes to ensure the proper use of the property.
Statutory Provision and Legal Framework
Onerous gifts are provided for under Sections 122 to 126 of the Transfer of Property Act, 1882. Section 122 defines a gift, Section 123 prescribes the mode of transfer, and Section 126 deals with revocation. In the case of an onerous gift, the donor imposes a burden on the donee which must be expressly stated in the gift deed. If the donee fails to perform the specified obligation, the gift may be revoked by the donor or enforced through legal proceedings. Courts uphold onerous gifts provided the obligations are lawful, possible, and clearly defined. This statutory framework ensures fairness while protecting the donor’s intentions and securing compliance by the donee.
Essential Characteristics and Importance
The essential features of an onerous gift include: transfer of property by the donor, acceptance by the donee, imposition of a lawful obligation or burden on the donee, and enforceability under law. The donee cannot enjoy the gift without fulfilling the stipulated conditions. The doctrine of onerous gifts is important in safeguarding the donor’s interests and ensuring that property is used as intended. In examination settings, students are often asked to differentiate onerous gifts from gratuitous or universal gifts. Understanding this concept helps in comprehending conditional transfers and family settlements in property law.
Real-Time Example
A practical example of an onerous gift is when a father gifts a house to his son on the condition that the son will maintain his mother and pay her monthly allowance. If the son accepts the gift but fails to fulfill the obligation, the father or heirs may seek legal remedy to enforce the condition. Another example is gifting movable or immovable property to a charitable organization on the condition that it will be used for a specified purpose. These examples illustrate how onerous gifts operate in real-life property transactions under Sections 122–126 of the Transfer of Property Act, 1882.
Mnemonic to Remember
A simple mnemonic to remember Onerous Gift is “BOND”. B stands for Burden on donee, O for Obligation imposed, N for Necessary acceptance, and D for Donor’s condition. Remembering “BOND” helps students quickly recall the essential elements of an onerous gift during examinations.
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