D. How gift is made?

1) A gift of immoveable property must be made by a registered instrument signed by or on

behalf of the donor and attested by at least two witnesses.
2) A gift of moveable property may be made by a registred instrument or by delivery of property.

 Where a gift in favour of someone is registered but it is not accepted by the donee, the gift
is incomplete.
 While registration is a necessary formality for the enforcement of a gift of immoveable
property, it does not suspend the gift until registration actually takes place.
 The donee in such a case can ask the donor to complete the gift by registration.
 Thus, the most essential thing for the validity of a gift is its acceptance. If the gift is accepted
but not registred it is a valid gift.

E. Gift is irrevocable –
a) A gift cannot be revoked at the will and pleasure of the grantor.
b) Revocable gift is void.
c) If the condition is one which does not depend on the will or pleasure of the donor, the gift
can be revoked on the happening of such condition.
Example –
1) A gives a field to B, reserving to himself, with B’s assent, the rights to take back the field
in case B and his descendents die before A, B dies without descendents during A’s lifetime.
A may take back the field.
2) A gives a lakh of rupees to B, reserving to himself with B’s assent the right to take back at
leisure Rs. 10,000 out of one lakh. The gift holds goods as to Rs. 90,000 but is void as to
Rs. 10,000 which continues to belong to A.

F. Conditional Gift –
 A gift which is subject to a condition precedent is also valid. But the condition attached to the
gift should not be illegal or immoral.
 A gift for future property is void

G. Onerous gift –
Onerous gift is when one person transfers several gifts, i.e., more than one gifts to another in a
single transfer, out of these gifts one is not burdened by obligation but other is burdened with
obligation, so here donee has to accept in full, he cannot accept one which is beneficial and reject
burdened with obligation.
Example, A makes a gift of shares in the companies X and Y. X is prosperous but heavy calls are
expected in respect of shares in Y company

Leases – Section 105 to 117

A. Definition of lease –
A “lease” of immoveable property is a transfer of a right to enjoy property. Since it is a transfer to
enjoy and use the property, possession is always given to the transferee. The lease of immoveable
property must be made for a certain period.

B. Essentials of Lease –
 It is a transfer of a right to enjoy immoveable property;

Such transfer is for a certain time or perpetuity;

It is made for consideration which is either premium or rent or both;

The transfer must be accepted by the transferee.

Lease Licence
transfer of an interest mere permission to do something without any
transfer of interest
both transferable and heritable neither transferable nor heritable
Comes to an end only in accordance with the can be withdrawn at any time at the pleasure of
terms and conditions stipulated in the contract the grantor
entitled to any improvement or accession made to no such entitlement
the property
unaffected by the transfer of the property by sale comes to an end immediately if the property is
in favour of third party and continues sold to a third party
lessee has the right to protect the possession in his licensee cannot defend his possession in his own
own right name as he does not have any propriety right in
the property
does not come to an end either by death of the comes to an end with the death of either grantor
grantor or the grantee or the grantee

C. Formalities involved –
lease from year to year or for any term exceeding one year can be made only by a registered
document. If a lease is for a term below one year, it can be made by an oral agreement. If a lease
is created by oral agreement, it must be accompanied by delivery of possession

D. Types of tenancies –
1) Tenancy from year to year –
a) A tenancy from year to year may be made by a grant of land from year to year.
b) If the tenancy is for a year to start with but after the expiration of one year the lessee
continues to be in possession and pays the rent to the landlord, the tenancy is regarded
as a year-to-year tenancy.
c) If, in case of a tenancy for a period more than a year the landlord wants to terminate or
end the lease, he has to give a six-month’s notice to the lessee to quit.
d) If, in case of a tenancy for a period more than a year the landlord wants to terminate or
end the lease, he has to give a six-month’s notice to the lessee to quit.
e) In case of a tenancy from month to month, a fifteen days notice to quit is necessary.

2) Tenancy-at-will –
 If the tenant stays with the consent of the landlord till such time as further period is
fixed or a fresh contract is made, the tenant is called a tenant-at-will.