Gift agreement

Extracts for legal literacy News

A gift agreement is one of the most widespread and commonly encountered contracts in practice of civil-law.

Relations in the case of conclusion and application of the agreement are governed by Articles 681-690, Chapter 33 of the Civil Code of the DPR entered into force on 1 July 2020.

According to the gift agreement one party (the donator) transfers or undertakes to transfer to the other party (the donee) free of charge an object or a right (requirement) into ownership to yourself or to a third person, or to release, or to undertake from property obligation towards yourself or the third person.

A pledge to transfer to someone free of charge an object or property right, or to release someone from property obligation (gift commitment) is accepted with the gift agreement and connect who promised, if a promise fulfilled in pristine order (Clause 2, Article 683, CC DPR) and contains an expressed intension to commit donation of an object or a right to particular person or to release him/her from property obligation.

In case of cross-transfer of an object or a right, or a cross-obligation a contract is not recognized to be that of gift, and consequently that of donation, according to Clause 2, Article 220 of CC DPR.

Apart from the above donation contract is considered void if it contains the promise of the donor to donate all of his/her property or a part of his/her property without indicated the exact scope of donation in the form of an object or right as well as in the case when donation contract provides for transfer of donation to the beneficiary after donor’s death.

In case when an individual person acts as a donor the donation may be made in oral form, for instance in the form of symbolic transfer (transfer of keys etc.) or in the form of transfer of documents of title to the beneficiary, excluding the contract containing promise of future gift which is to be executed in writing.

  1. If a legal entity is the donor and the amount of donation exceeds 1500 rubles;
  2. If the donor promises to make a donation then donation contract is to obligatory be executed in writing.

Gift or donation of property is also subject to state registration.

The donee has the right to refuse from gift at any moment prior to transfer of the donation to him/her. In such case agreement is considered cancelled (Article 682).

At the same time, the Civil Code concretizes circumstances, prohibiting the restricting and repealing of gift, and also conditions of abandon of implementations of gift agreement (Articles 684-687).

Thus, a donation is not permitted with the exception of ordinary gifts, cost of which is not exceeded 1500 rubles:

  1. on behalf of minors and of legally incapacitated citizens, by their legal representatives;
  1. employees of medical treatment, social protection facilities and other similar facilities by citizens who are undergoing treatment, living or being educated in those facilities, by spouses or relative of such citizens;
  1. by government and municipal authorities employees in DPR, in connection with their official capacity or in connection with implementation of employment duties by authority servicemen, municipal servicemen, servicemen of the DPR Central Republican Bank (prohibit of donation isn’t expended on cases of donation in connection with social events, officials missions and other official events. Presents, accepting mentioned persons, and cost of which is exceeded 1500 rubles, recognized accordingly as a state or municipal property and transfer by staff member upon an act to a body, in which mentioned person replaced post);
  1. between commercial organizations.

Limiting gift:

  1. A legal person, to whom an object belongs to based on the right of operating control or operational management, has the right of gift by approbation of the owner, if it is not otherwise stipulated by the law. This restriction isn’t expended on regular presents of moderate cost.
  2. Gift of property, being in joint ownership is permitted by approbation of all of the joint owners, according to Article 314 of CC DPR.
  3. Donation belonging to a donor right to claim towards a third person is carried out with the observance the rules, envisaged by Articles 477-481, 483 and 485 of CC DPR.
  4. Donation via implementation of obligations for a donee towards a third person is carried out with the observance of rules, envisaged by Clause, 1 Article 1 of CC DPR.
  5. A letter of attorney to donate by a representative, who isn’t mentioned by a donee in it, and (or) subject of donation is not specified, is void.

A donor has right to cancel donation, if a donee attempted on his/her life, on lives of his/her members of family or relatives, or designedly caused bodily injury, and also has right to demand the cancel of donation in court, if treatment by a donee with a gift, which is big non-property value for a donor makes threat of its irrevocable loss.

In the case of cancelling the donation, a donee has to take off a gift, if it is in a nature form before the moment of cancelling the donation.

Meanwhile, rules of cancel of implementation a gift agreement and cancel of donation don’t aren’t applied to ordinary gifts of moderate cost.

Legal succession in case of promise of gift establishes, in case of rights of beneficiaries, to whom a gift is promised under an agreement, do not pass to his heirs (successors), and the obligations of the donor who promised donation pass to his heirs (successors), if it is not otherwise stipulated by the law.