Transfer of Property Act Section 126 — When gift may be suspended or revoked
CHAPTER VII OF GIFTS
General
Summary
A gift can be suspended or cancelled if the giver and receiver agree that it will happen upon a specific event that is not controlled by the giver. However, if they agree the giver can cancel the gift simply because they want to, that part of the gift is invalid. A gift can also be cancelled for the same reasons a contract could be cancelled, except for lack of payment or benefit. Apart from these situations, a gift cannot be cancelled, and this rule does not affect the rights of someone who later buys the gifted property in good faith and without knowing about the gift.
Official Text
The donor and donee may agree that on the happening of any specified event which does not depend on the will of the donor a gift shall be suspended or revoked; but a gift which the parties agree shall be revocable wholly or in part, at the mere will of the donor, is void wholly or in part, as the case may be. A gift may also be revoked in any of the cases (save want or failure of consideration) in which, if it were a contract, it might be rescinded. Save as aforesaid, a gift cannot be revoked. Nothing contained in this section shall be deemed to affect the rights of transferees for consideration without notice. Illustrations
(a) A gives a field to B, reserving to himself, with B’s assent, the right to take back the field in case B and his descendants dies before A. B dies without descendants in A’s lifetime. A may take back the field.
(b) A gives a lakh of rupees to B, reserving to himself, with B’s assent, the right to take back at pleasure Rs. 10,000 out of the lakh. The gift holds good as to Rs. 90,000, but is vo id as to Rs.10,000, which continue to belong to A.