Transfer of Property Act Section 128 — Universal donee

CHAPTER VII OF GIFTS

General

Summary

If a person gives away their entire property as a gift, the person receiving that gift becomes personally responsible for paying all the debts and liabilities the giver had at the time of the gift. This responsibility is limited to the value of the property that was gifted. This rule applies only as long as it does not conflict with the conditions mentioned in section 127.

Official Text

Subject to the provisions of section 127, where a gift consists of the donor’s whole property, the done is personally liable for all the debts due by 1[and liabilities of] the donor at the time of the gift to the extent of the property comprised therein.