CHAPTER VII OF GIFTS

Section 126: When gift may be suspended or revoked

The donor and donee may agree that on the happening of any specified event which does not depend on the will of the donor a gift shall be suspended or revoked; but a gift which the parties agree shall be revocable wholly or in part, at the mere will of the donor, is void wholly or in part, as the case may be.

A gift may also be revoked in any of the cases (save want or failure of consideration) in which, if it were a contract, it might be rescinded.

Save as aforesaid, a gift cannot be revoked.

Nothing contained in this section shall be deemed to affect the rights of transferees for consideration without notice.

Illustrations

(a) A gives a field to B, reserving to himself, with B’s assent, the right to take back the field in case B and his descendants dies before A. B dies without descendants in A’s lifetime. A may take back the field.

(b) A gives a lakh of rupees to B, reserving to himself, with B’s assent, the right to take back at pleasure Rs. 10,000 out of the lakh. The gift holds good as to Rs. 90,000, but is vo id as to Rs.10,000, which continue to belong to A.

Questions on this section

3 questions in 21 of our papers cite Section 126. Try these from the free papers:

1. A gives Rs 1,00,000 to B, reserving to himself, with B's assent, the right to take back Rs 20,000 out of it at his pleasure. Under Section 126 of the Transfer of Property Act, 1882, the gift is:
2. Assertion (A): Where a gift is revoked on the happening of an event agreed between donor and donee, the revocation does not affect a person who had bought the property from the donee for consideration and without notice. Reason (R): Under Section 126 of the Transfer of Property Act, 1882, a gift revoked on the happening of an agreed event stands revoked as against every transferee from the donee, whether or not he gave consideration or had notice. Select the correct answer:

Practise questions on Transfer of Property Act