Goods Gift

Key introductory points for gifts?

Ownership usually acquired through a transferor – derivative legal title | Transferor can't pass more than it has (nemo dat) | Transfer for value = sale; gratuitous = gift | Gifts are always voluntary, unlike contract (Commissioner of Australia v McPhail).

Gift – ELEMENTS (Williams v Williams)?

(1) Present intention to make a gift (2) acceptance by the donee (3) delivery – actual or constructive.

CASE: Williams v Williams – facts?

Son claimed his father promised him the family pianola as a gift; family corroborated father's intention; acceptance could be inferred | Issue: was there delivery?

CASE: Williams v Williams – held + use?

Delivery may be physical or constructive – but nothing was done to signify a transfer of ownership; the pianola stayed in the living room → gift incomplete, no legal transfer of title | Use: intention alone is not enough without delivery.

CASE: Rowland v Stevenson – facts?

Son claimed his stepfather promised him a yacht as a birthday gift | Birthday speech, cake in the shape of the yacht, yacht brought to the party, son given a slot car; son handed the yacht key the afternoon before.

CASE: Rowland v Stevenson – held + ratio?

Present intention shown overall from the factors; constructive delivery by handing over the key → gift complete, title passed | Son had the right to possession and could sue in detinue | Ratio: elements need not be simultaneous or in order; gifts can carry conditions precedent or subsequent.

Condition precedent v condition subsequent on a gift?

Precedent – there is no gift unless the condition is met | Subsequent – the gift eventually fails if the condition is not met (Rowland v Stevenson).

CONSEQUENCES of a valid gift?

Legal title has transferred to the donee, who acquires the right to possession and its benefits | If the donor still has the chattel → consider whether the donor is a bailee or is liable in conversion/detinue.

CONSEQUENCES if there is NO valid gift?

Consider in the alternative a declared express trust | If the donor has died, consider succession.

APPLY: Mum says 'the car is yours' and gives you the only set of keys, but keeps it in her garage. Gift?

Present intention + acceptance + constructive delivery (keys = means of control, Rowland) → valid gift | Mum holding it may be a bailee; if she refuses to return it → detinue/conversion.