Principle If a person transfers movable or immovable property with its full ownership and witho...........

Indian Contract Act (ICA)1872 Consideration of Contract

Principle: If a person transfers movable or immovable property with its full ownership and without any consideration to some other person, then it is called a gift.

Facts: S, who has no child of his own, makes a gift of his house worth Rs. 25 lacs to his nephew R. After completing all the legal formalities required for a valid gift, S says to R that in case of need R will provide that house to S for use without any questions. R does not react to it. After one year of this gift, S really needs that house and request R to make the house available to him, but R refuses to do so.

R cannot refuse as he got the house without paying any consideration for that.

R cannot refuse as S is without children.

R can refuse as he has become full owner of the house.

R can refuse as he himself may be in need of that house.

Explanation:

There is no nexus between the Principle and facts because the principle is silent upon the legal implications after making a gift. The gift when made properly to Rtransfers the property completely in the hands of R. Since Ris now the owner he can choose to give or not give his property to S. However, if we have to go ahead with the options given, option "3" would be considered the best out of the lot.