Gift and Sale

Question 1

What are elements of a gift?

Answer 1

A gift is created if there is:

1) Intent
2) Delivery
3) Acceptance

Question 2

Rule for Intent

Answer 2

Donor intends to make a present transfer of an existing interest in the property

*The type of gift is determined by intent

1) If intend to give now: inter vivos gift
2) If intend to give when dead: testamentary gift
3) If intend to give if you die, but revoke if you don’t die: causa mortis gift

Question 3

Rule for Delivery

Answer 3

Delivery must be actual physical delivery, unless manual delivery is impractical.

If so, then (1) constructive or (2) symbolic delivery is permitted

Question 4

Constructive delivery v. symbolic delivery

Answer 4

Either used when manual delivery is not possible.

Constructive delivery: giving an object that gives access to the gift (i.e. keys)

Symbolic delivery: giving something that represents the gift (i.e. written instrument)

Question 5

Rule for Acceptance

Answer 5

Acceptance of gift is presumed, unless the person expressly refuses the gift

Question 6

Types of gifts

Answer 6

Inter vivos: intent now to give now (irrevocable)

Testamentary: intent now to give when die. It’s a gift given by will (requires compliance w/ will laws)

Causa mortis: intent now to give when die, but if survive, there’s no gift

Question 7

Things to look for on a sale question

Answer 7

Check:

1) the sale has a contractual element
2) analyze the title - whether it’s void title or voidable title

Question 8

What is void title?

Answer 8

Has to no title (i.e. property was stolen).

If title is void, anyone who purchases cannot receive better title than the void title, even if BFP

Question 9

What is voidable title?

Answer 9

(Original owner is somewhat at fault: let someone borrow who ended up stealing; received bad check; got tricked)

If title is voidable, a BFP can receive good title and win against the original owner