12. A makes a gift to X, Y and Z. X and Y accept while Z refuses. What happens to the gift?

Bonus shares

1. Facts of the Case:

A makes a gift of certain property to three individuals: X, Y, and Z. X and Y accept the gift, but Z refuses to accept it. The question arises as to the effect of Z’s refusal on the validity of the gift in favor of all three donees.

2. Issues in the Case:

  1. Whether a gift made to multiple donees becomes invalid if one of the donees refuses the gift.
  2. The legal effect of partial acceptance of a gift under Indian law.

3. Legal Principles Covered:

  • Indian Contract Act, 1872 & Transfer of Property Act, 1882:
    • A gift is a voluntary transfer of property by one person to another without consideration, made during the lifetime of the donor and accepted by the donee.
    • Acceptance is essential for the validity of a gift (Section 5, Transfer of Property Act, 1882).
  • Partial Acceptance Principle:
    • If a gift is made to multiple donees, it is valid as far as those donees who accept it. The refusal of one donee does not invalidate the gift for others.
  • Case Law Reference: Courts have held that a gift can be valid for accepting donees even if some refuse (e.g., K.K. Verma v. Union of India).

4. Possible Judgement:

The court is likely to hold that the gift is valid in favor of X and Y, the donees who accepted it. Z, who refused the gift, acquires no rights, and the refusal does not affect the portion of the gift accepted by others.

About Lawgnan

Understanding the law of property regarding gifts is essential for both donors and recipients. If you are planning to make a gift to multiple individuals, knowing the implications of acceptance and refusal can help avoid legal disputes. Ensure proper documentation of the gift and obtain written acceptance from the donees. Consult a legal expert to clarify any doubts about multiple donees, partial acceptance, or refusal. Protect your property rights and ensure smooth transfers by understanding your obligations and rights under Indian law. For detailed legal guidance and property dispute solutions, visit lawgnan.in.

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