You may be wondering…

• What mistakes can make a gift agreement invalid?

• What if we agreed verbally – is that even valid?

• Can a contract be void due to minor formalities?

• How do courts approach invalid gift agreements?

Clients ask me…

When is a gift agreement invalid?
For example, when the mandatory written form is missing for real estate, if the agreement isn’t signed by all parties, or if it violates the law (e.g., gifts to healthcare staff during hospitalization).

What if the agreement is unclear?
Vaguely drafted agreements may be deemed invalid by the court – especially if the subject of the gift isn’t clearly identified.

Can an agreement appear fine and still be struck down?
Yes, if it’s proven that the donor lacked legal capacity, was under duress, or the agreement contradicts good morals.

Invalid agreement in a nutshell

• Written form is mandatory for real estate and assets registered in public records.

• The donor, donee, and subject of the gift must be clearly identified.

• The agreement cannot contradict the law or good morals.

• Signatures of all parties are essential.

Most common mistakes

1. No written contract for real estate.

2. Incorrect identification of parties or subject of the gift.

3. Gifting in prohibited situations (e.g., to healthcare staff during treatment).

4. Donor is a minor or lacks capacity without legal guardian consent.

5. Attempting to bypass inheritance rules – gift “in case of death” without meeting conditions.

How courts decide

• The Supreme Court consistently emphasizes that missing written form for real estate gifts makes the agreement absolutely invalid.

• Courts also reject agreements where the subject of the gift is not sufficiently specific – e.g., “a flat in building XY” without a unit number.

• Case law also shows courts ruling invalid where the donor was pressured or where the agreement grossly violated fairness.

Real-life example

A woman gifted her son a plot of land, but the agreement failed to state the precise parcel number. A dispute over boundaries dragged on for years until the court declared the contract invalid. The transfer had to be done all over again – this time correctly.

Why to be cautious with free templates

Online templates often lack the required details. What looks like a “minor formality” can be a fatal flaw in court.

Lawyer’s recommendation

• Never underestimate the importance of clearly describing the subject of the gift.

• For real estate: always a written contract with all statutory requirements and registration in the land register.

• For high-value gifts, it’s worth consulting a lawyer.

Checklist:
☑ Donor and donee clearly identified
☑ Exact description of the subject of the gift
☑ Signatures of all parties
☑ Verified that the gift isn’t prohibited by law

FAQ

Is oral gifting of money valid?
Yes, if it’s a small amount and handed over immediately. For larger sums, a written agreement is advisable.

What if only the donor signed the contract?
Invalid – all parties must sign.

Can an agreement be challenged years later?
Yes, if it’s absolutely invalid, courts will consider it at any time.