Principle A gift comprising both existing and future property is void as to the latter Facts lsquo X...........

Indian Contract Act (ICA)1872 Valid and Void Contracts

Principle: A gift comprising both existing and future property is void as to the latter.

Facts: ‘X’ has a house which 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?

Gift of both the properties is valid

Gift of both the properties is void

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

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

Explanation:

Understand the principle. The principle states that when a single gift is made partially of property which the person making the gift owns at the time of making the gift and partially of such property he shall acquire in the future, only the first part of such gift shall be valid. In this case X makes a gift to Yconsisting of a house which he owns and land which he is expected to get. As per the principle only the gift of the house shall be a valid one.