Question

Principle: A gift comprising both existing and the future property is void as to the latter. 
Facts: 'X' has a house that is owned by him. He contracted to purchase a plot of land adjacent to the said house, but the sale (of the plot of land) in his favour is yet to be completed. He makes a gift of both the properties (house and land) to 'Y'

Under the aforementioned circumstances, which of the following derivations is correct?

Options

• Gift of both the properties is valid

• Gift of both the properties is void

• Gift of the house is void, but the gift of the plot of land is valid

• Gift of the house is valid, but the gift of the plot of land is void

Answer 1

Gift of the house is valid, but the gift of the plot of land is void

Explanation:

Section 122 of the Transfer of Property Act states that 'Gift' is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person, called the donor, to another, called the doner and accepted by or on behalf of the done. The subject matter of the gift has to be an existing property and not a future property. In the given case, the gift of the house is valid as it is an existing property, but the gift of the plot of land is invalid because it is a future property.