Write a short note on Onerous Gifts.

Question: Write short note on Onerous Gifts. [MPJS 2018]

Find the answer to the mains question of Property Law only on Legal Bites. [Write short note on Onerous Gifts.]

Answer

An onerous gift refers to a gift that is burdened with certain obligations or liabilities. Under Section 127 of the Transfer of Property Act, 1882, when a person voluntarily makes a gift of property to another and attaches a condition that imposes a burden or liability on the donee, such a gift is said to be onerous.

If the donee accepts the gift, he must accept it along with the burden, unless the gift is divisible and the donee disclaims the onerous part while accepting the beneficial one (only applicable if the gifts are made under the same instrument and are separable). However, if the donee is a minor, he is not bound by the obligation until he attains majority and elects to retain the gift.

Illustration:

A gifts B a house (valuable) and a leasehold property burdened with heavy rent (liability) through a single deed. B cannot accept the house and reject the leasehold unless both are separable and distinctly mentioned.

Key Points:

• Governed by Section 127 of TPA, 1882.
• Imposes both benefit and burden.
• Acceptance binds the donee to the obligation.
• Special provision exists for minors.

This concept ensures that a donee cannot selectively accept only the beneficial part of a composite gift while rejecting its liabilities.