P makes a gift to X, Y and Z. X and Y accept while Z refuses. What happens to the gift? P makes a gift to X, Y and Z. X and Y accept while Z refuses. What happens to the gift?
The validity of the gift depends upon the acceptance of the donee. As per Sec. 125 of the Transfer of Property Act, 1882, When a gift is made to more than one donee, and one of them does not accept it, the whole gift does not fail, but it is void as to the interest which is not accepted.
In the given problem, P makes a gift to X,Y and Z, i.e., 1/3rd to each.
X and Y accept the gift, and hence they may claim their share of 1/3rd each, but since Z refuses his share, that share of 1/3rd shall alone fail and continue to remain with the donor P.