Gifts MCQ Quiz - Objective Question with Answer for Gifts - Download Free PDF

The correct answer is Void

 Key Points

• According to Section 122 of the Transfer of Property Act, 1882, a gift is valid only if accepted by the donee during the lifetime of the donor and while the donor is still capable of giving.
  • If the donee dies before accepting the gift, there is no acceptance,
  • Hence, no valid transfer takes place,
  • Therefore, the gift is void.

Additional Information

• Illegal –  Not applicable; it’s not against the law, just void due to lack of acceptance.
• Valid –  Wrong; acceptance is mandatory for validity.
• Voidable –  Incorrect; voidable applies to contracts with defects, not unaccepted gifts.

The correct answer is Option 3. 

Key Points

• Relevant Law – Section 122, Transfer of Property Act, 1882:
  • A gift is a voluntary transfer of property without consideration, and it must be accepted by the donee.
  • Acceptance is a mandatory requirement for a gift to be valid.
  • If the donee refuses the gift, the gift fails as to that portion.
• Application to the Question:
  • Here, A made a composite gift to B, C, and D.
  • B and C accepted, so the gift stands valid for their shares.
  • D refused, so the gift is void only as to D’s share.
• Legal Position:
  • The gift is partially valid.
  • D’s portion does not vest in him, and unless the donor reallocates it, it reverts to the donor.
  • The validity of B and C's shares remains unaffected

Additional Information

• The whole gift is void – Incorrect. The gift is only void to the extent of D’s share.
• Gift is valid and part of the gift made to D will be shared by B and C – Incorrect. Unless specified by the donor, D’s share does not automatically pass to B and C.
• The property vests in D irrespective of his refusal – Incorrect. Acceptance is mandatory; without it, no vesting occurs.

The correct answer is Section 127

Key Points

• Section 127 deals with the concept of onerous gifts, i.e., gifts that come with a burden or obligation attached to them.
• A gift is said to be onerous when:
• The donee receives a gift that includes a liability (e.g., a property subject to debt or encumbrance).
• The donee must either accept or reject the gift in totality—they cannot accept the benefit and reject the burden.
• The section also applies to universal donees, i.e., persons who receive the entire estate of the donor under a gift.
• If a donee accepts a part of the gift which is beneficial, they are deemed to have accepted the whole gift including its obligations, especially if the donee is a major and competent to contract.
• If the donee is a minor, the burden does not bind them unless, after attaining majority, they accept the gift in full.

Additional Information

• Option 2. Section 124: Incorrect – Deals with what constitutes a valid gift (transfer without consideration).
• Option 3. Section 125: Incorrect – Relates to gift made to several persons where one does not accept.
• Option 4. Section 126:Incorrect – Provides for revocation or suspension of gifts under certain conditions.

The correct answer is Gift inter-vivos

Key Points

• Section 122 defines a gift as a voluntary transfer of property made without consideration by one living person (donor) to another (donee) and accepted by or on behalf of the donee during the lifetime of the donor.
• This type of gift is known as a Gift inter-vivos, meaning a gift made between living persons.
• The essentials of a valid gift under Section 122 are:
  • It must be voluntary.
  • It must be made without consideration.
  • The donor and donee must be living persons.
  • The donee must accept the gift during the lifetime of the donor.
• Section 122 does not apply to:
  • Gift mortis causa (gift in contemplation of death).
  • Gift by will (which takes effect only after death and is governed by succession laws).

Additional Information

• Option 2. Gift moritis causa: Incorrect — This is a conditional gift made in contemplation of death, not governed by Section 122.
• Option 3. Gift by will: Incorrect — A will takes effect only after death and is governed by the Indian Succession Act, not the TPA.
• Option 4. All of the above: Incorrect — Only gift inter-vivos is covered under Section 122, not the other two.

The correct answer is Gift may be made only of movable property

Key Points

• Section 122 of the Transfer of Property Act, 1882 defines a gift as the voluntary transfer of ownership of property from one person (donor) to another (donee) without consideration.
• The Act does not restrict gifts to only movable property — a gift may be made of both movable and immovable property.
• The key conditions for a valid gift include:
  • It must be voluntary.
  • It must be without consideration.
  • It must involve existing property.
  • It must be accepted by the donee during the lifetime of the donor.
• For immovable property, the gift must be:
• Made through a registered instrument signed by the donor and attested by two witnesses (as per Section 123).
• Accepted by the donee during the donor’s lifetime.
• For movable property, the gift can be made either through a registered document or delivery of possession.

Additional Information

• Option 1. Gift is the transfer of ownership without consideration: Correct — This is the basic definition of a gift under Section 122.
• Option 2. Gift should be accepted during the lifetime of the owner: Correct — If the donee does not accept it during the donor's lifetime, the gift is invalid.
• Option 3. If donee dies before acceptance, the gift is void: Correct — Without acceptance, the gift is incomplete and void.

The correct answer is Option 2.

Key PointsIn case of gift, if the donor dies before acceptance, then the gift is void.

• According to Section 122 of The Transfer of Property Act, 1882, Gift is the transfer of certain existing moveable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee. Such acceptance must be made during the lifetime of the donor and while he is still capable of giving it. If the donee dies before acceptance, the gift is void.

Additional Information Section 123 lays down two modes for effecting a gift depending on the nature of property.

As per Section 124 of this Act, the gifted property must be in existence at the time of making the gift, although its conveyance may take place either in future or in present.

The correct answer is Section 122

Key Points Section 122. “Gift” defined.
Gift is the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.
Acceptance when to be made.-- Such acceptance must be made during the lifetime of the donor and while he is till capable of giving,
If the donee dies before acceptance, the gift is void.

The correct answer is Turvunuru, Chitradurga

Key Points

• The epicenter of the "Eachalu Marada Chaluvali" (Toddy Tree Movement) was in Turuvenur village, located in the Chitradurga district of Karnataka.
• The movement, led by leaders like S. Nijalingappa, focused on cutting toddy trees as a protest against the British colonial regime and local liquor consumption.
• Bellary Siddamma actively participated in this movement, contributing significantly to the freedom struggle and rural empowerment in the region.

The correct answer is Option 2

Key Points

• Section 125 of the Transfer of Property Act says that in case a property is gifted to more than one donee, one of whom does not accept it, the gift, to the extent of the interest which he would have taken becomes void. Such interest reverts to the transferor and does not go to the other donee.
• A gift made to two donees jointly with the right of survivorship is valid, and upon the death of one, the surviving donee takes the whole.
   

Additional Information

• Section 126 – When gift may be suspended or revoked.
• Section 127 – Onerous gifts.
• Section 124 – Gift of existing and future property.

The correct answer is Void

Key PointsSection 122 of the Transfer of Property Act, 1882 defines "Gift”.

It states that : 

• “Gift” is the transfer of certain existing moveable or immoveable property made voluntarily and without consideration, by one person, called the donor, to another, called the donee, and accepted by or on behalf of the donee.
• Acceptance when to be made.—
• Such acceptance must be made during the lifetime of the donor and while he is still capable of giving.
• If the donee dies before acceptance, the gift is void.

The correct answer is Option 3.

Key Points

• Section 125 of the Transfer of Property Act says that in case a property is gifted to more than one donee, one of whom does not accept it, the gift, to the extent of the interest which he would have taken becomes void. Such interest reverts to the transferor and does not go to the other donee.
• A gift made to two donees jointly with the right of survivorship is valid, and upon the death of one, the surviving donee takes the whole.
   

Additional Information

• Section 126 – When gift may be suspended or revoked.
• Section 127 – Onerous gifts.
• Section 124 – Gift of existing and future property.

The correct answer Section 127

Key PointsSection127. Onerous gifts
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 done can take nothing by the gift unless he accepts it fully.
Where a gift is in the form of two or more separate and independent transfers to the same person of several things, the done is at liberty to accept one of them and refuse the others, although the former may be beneficial and the latter onerous.
Onerous gift to disqualified person.- A done 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

The correct answer is Section 127.

Key Points 

• Section 127 of the Indian Transfer of Property Act (TPA), 1882 deals with "Onerous gifts".
• It essentially states that 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.

In simpler terms, this means that:

• If a person receives a gift that includes both beneficial and burdensome things (e.g., a house with a high rent), they cannot accept only the beneficial parts and reject the burdensome ones.
• They must either accept the entire gift, including the burdens, or reject it entirely.

The correct answer is Void

 Key Points

• According to Section 122 of the Transfer of Property Act, 1882, a gift is valid only if accepted by the donee during the lifetime of the donor and while the donor is still capable of giving.
  • If the donee dies before accepting the gift, there is no acceptance,
  • Hence, no valid transfer takes place,
  • Therefore, the gift is void.

Additional Information

• Illegal –  Not applicable; it’s not against the law, just void due to lack of acceptance.
• Valid –  Wrong; acceptance is mandatory for validity.
• Voidable –  Incorrect; voidable applies to contracts with defects, not unaccepted gifts.

The correct answer is Option 3. 

Key Points

• Relevant Law – Section 122, Transfer of Property Act, 1882:
  • A gift is a voluntary transfer of property without consideration, and it must be accepted by the donee.
  • Acceptance is a mandatory requirement for a gift to be valid.
  • If the donee refuses the gift, the gift fails as to that portion.
• Application to the Question:
  • Here, A made a composite gift to B, C, and D.
  • B and C accepted, so the gift stands valid for their shares.
  • D refused, so the gift is void only as to D’s share.
• Legal Position:
  • The gift is partially valid.
  • D’s portion does not vest in him, and unless the donor reallocates it, it reverts to the donor.
  • The validity of B and C's shares remains unaffected

Additional Information

• The whole gift is void – Incorrect. The gift is only void to the extent of D’s share.
• Gift is valid and part of the gift made to D will be shared by B and C – Incorrect. Unless specified by the donor, D’s share does not automatically pass to B and C.
• The property vests in D irrespective of his refusal – Incorrect. Acceptance is mandatory; without it, no vesting occurs.