Gift deed is a legal instrument by which an owner can transfer his movable and immovable property in his lifetime. Even though the receiver of such a gift — known as the donee in the legal parlance — does not have to pay anything in exchange for this gift, he/she can certainly be obliged to meet several responsibilities as a receiver of the benefit. This is where the concept of onerous gift comes into picture.
What is an onerous gift?
According to the Oxford Dictionary, onerous, an adjective, means “needing great effort; causing trouble or worry”. The concept of onerous gift works on similar sentiments. An onerous gift offers benefits to the donee but also mandates him/her to meet certain obligations as part of the contract. The donee can’t refuse to meet those obligations while he/she accepts to enjoys the benefits. In case of an onerous gift, benefits and obligations go hand-in-hand as far as the recipient of the gift is concerned.
Onerous gift under Section 127 of Transfer of Property Act
In India, the Transfer of Property Act of 1882 defined onerous gift based on the concept of qui senti commode sentire debet et onus which means “he who receives the advantage must also suffer the burden”.
“Where a gift is in the form of a single transfer to the same person of several things, of which one is, and the others are not, burdened by an obligation, the donee can take nothing by the gift unless he accepts it fully,” reads the Section 127 of the Act.
“Where a gift is in the form of two or more separate and independent transfers to the same person of several things, the donee is at liberty to accept one of them and refuse the others, although the former may be beneficial and the latter onerous,” it adds.
Can minors accept onerous gifts?
To make a gift deed valid, the donee must accept it. However, the Section 127 also specifies that a person not competent to enter a contract is under no obligation to meet the responsibilities attached to the gift. While such a person can accept the gift, he is not bound by the law to meet the burden attached with the gift.
“A donee not competent to contract and accepting property burdened by any obligation is not bound by his acceptance. But, if after becoming competent to contract and being aware of the obligation, he retains the property given, he becomes so bound,” reads the section.
FAQs
What does ‘transfer’ mean under Transfer of Property Act?
Transfer includes transfer through sale, mortgage, lease, actionable claim, gift, or exchange.
What kind of property transfers are there?
The Transfer of Property Act talks about six types of property transfers, such as: Sale Lease Mortgage Exchange Gift Actionable claim
What is an onerous gift?
An onerous gift fixes certain conditions on the donee to enjoy the benefits of the gift.
Which section of the Transfer of Property Act describes the universal donee?
The Section 128 of the Transfer of Property Act described the universal donee.
Who is a universal donee?
A universal donee receives both movable, as well as immovable properties of the donor. Such a donee is also liable for all debts and liabilities of the donor.
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An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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