Don’t Assume a Gift Deed is Irrevocable: What You Need to Know!
A gift deed can be revoked in India under certain circumstances. The revocation of a gift deed is governed by the Transfer of Property Act, 1882, and the Indian Contract Act, 1872.
According to Section 126 of the Transfer of Property Act, a gift can be revoked under the following circumstances:
- By mutual agreement: The donor and the donee can mutually agree to cancel the gift deed.
- On the happening of a contingency: If the gift deed specifies a contingency upon which the gift will be revoked, and that contingency occurs, the gift can be revoked.
- On non-fulfilment of condition: If the gift deed is conditional, and the condition is not fulfilled, the gift can be revoked.
- By rescinding the contract: If the gift deed was made by fraud, coercion, misrepresentation, or undue influence, the donor can apply to a court to rescind the contract.
It is important to note that the revocation of a gift deed must be done through legal means, and a verbal or unilateral revocation is not valid in India. The revocation of a gift deed should be done through a registered document, and the donor should obtain a written acknowledgment from the donee that the gift has been revoked.
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