Section 127 - Onerous gifts : Transfer of Property Act, 1882
What is Onerous gifts? Section 127 of Transfer of Property Act, 1882
Section 127 of Transfer of Property Act 1882 : "Onerous gifts"
127. 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.
Where a gift is in the form of two or more separate and
independent transfers to the same person of several things, the
donee 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 donee 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.
(a) A has shares in X, a prosperous joint stock
company, and also shares in Y, a joint stock
company, in difficulties. Heavy calls are expected
in respect of the shares in Y. A gives B all his
shares in joint stock companies. B refuses to accept
the shares in Y. He cannot take the shares in X.
(b) A, having a lease for a term of years of a house at a
rent which he and his representatives are bound to pay during
the term, and which is more than the house can be let for, gives
to B the lease, and also, as a separate and independent
transaction, a sum of money. B refuses to accept the lease. He
does not by this refusal forfeit the money.