Meaning and Concept
A Resumable Gift is a gift of property that can be revoked or taken back by the donor upon the happening of a specified event, provided such condition is lawful and agreed upon at the time of making the gift. The concept of resumable gift is recognized under Section 126 of the Transfer of Property Act, 1882, which deals with the revocation or suspension of gifts. Unlike an absolute gift, a resumable gift does not confer irrevocable ownership; the donee’s right remains subject to the condition imposed. The condition must not be illegal, immoral, or opposed to public policy.
Statutory Provision and Legal Framework
The legal framework governing resumable gifts is found in Section 126 of the Transfer of Property Act, 1882. This section allows a gift to be revoked upon mutual agreement between the donor and donee or upon the occurrence of a specified condition that does not depend solely on the will of the donor. Courts have clarified that a donor cannot unilaterally revoke a gift unless such right is expressly reserved. Conditions for resumption must be clearly mentioned in the gift deed; otherwise, the gift becomes absolute and irrevocable.
Essential Characteristics and Importance
The essential characteristics of a resumable gift include conditional transfer, existence of a lawful condition, reservation of right to resume, and agreement of both parties. Its importance lies in allowing donors to protect their interests while transferring property. In examinations, resumable gift is often contrasted with absolute gift and onerous gift to test understanding of conditional transfers. Understanding this concept helps students analyze whether a gift is validly revocable under law and whether conditions attached are enforceable.
Real-Time Example
A real-time example of a resumable gift is when a father gifts a house to his son on the condition that the son will maintain him during his lifetime, and if the son fails to do so, the gift will be revoked. If the son neglects the father, the father can legally resume the property. Another example is gifting land for a specific charitable purpose with a clause allowing resumption if the land is used for any other purpose. These examples reflect the application of Section 126 of the Transfer of Property Act, 1882.
Mnemonic to Remember
A simple mnemonic to remember Resumable Gift is “R.E.S.U.M.E”.
R – Right reserved
E – Express condition
S – Section 126 TPA
U – Upon event
M – Mutual agreement
E – Enforceable condition
This mnemonic helps students recall the concept easily during exams.
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