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Revocation of Conditional Gift

A gift is a voluntary transfer of property or of a property interest from one individual to another, made gratuitously to the recipient.  The individual who makes the gift is known as the donor, and the individual to whom the gift is made is called the donee.

A conditional gift is a gift which will take place only if a particular event specified as a condition for the taking into event of the gift occurs within the time specified by the donor.  However, in such case, the restrictions or conditions imposed on a gift must not be inconsistent with the vesting of title in order for a completed gift to occur.

In case of conditional gift, a donor may revoke the conditional gift if the donee fails or refuses to comply with the conditions imposed by the donor.

Generally, where a gift is conditioned upon the performance of some act by the donee and that condition is not fulfilled, the donor may recover the gift.  However, the mere fact that the donee fails to do what the donor hopes and expects of the donee does not warrant the revocation of a completed gift.

The question of whether a gift is conditional or absolute is a question of the donor’s intent.  This intent is to be determined from any express declaration by the donor at the time of the making of the gift or from the circumstances.


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