Transfer Of Property Act - Study Mode

Explanation

Solution: Definition: A gift, in the context of the Transfer of Property Act, refers to the transfer of certain existing movable or immovable property voluntarily and without consideration, from one person (the donor) to another (the donee). Correct Answer: Option C: Void as to the interest which he would have taken had he accepted When a gift is made to multiple donees jointly, the acceptance of all donees is necessary for the gift to be completely valid. If one donee refuses to accept the gift, the gift is considered void only with respect to that refusing donee's share. The other donees will still retain their respective shares of the gift. This is because joint ownership implies that each donee receives a distinct share in the property. The refusal of one donee does not invalidate the entire gift but only affects his or her intended share. Why other options are incorrect: Option A: Valid at the option of the heir: This is incorrect. The heir of the refusing donee does not automatically inherit the share. The refusal renders that portion of the gift void. It doesn't pass to the heir unless the refusal is somehow a legally defective rejection that can be overturned by a court. Option B: Voidable at the option of the donor: While the donor might choose to revoke the entire gift under certain circumstances (e.g., fraud), the refusal of one donee does not automatically give the donor the right to void the whole gift. The refusal only affects the share of the rejecting donee. Option D: Valid as to the interest which he would have taken had he accepted: This is incorrect. The interest of the rejecting donee is not valid. It remains un-gifted and does not pass to anyone unless the gift is redefined legally.