May 24

Revocation of Gift

Tags:

Donation is a bilateral legal relationship where one party transfers ownership title to a certain thing to another party for fee. This relationship is economically unbalanced as the donor receives no consideration for his gift, thus the legal concept of donation is typical for familial and similar close relationships. The legal concept of revocation of a gift represents a certain compensation of economical imbalance of relationships based on donations.
By Act No. 89/2012 Coll., the Civil Code (the “CC”), two basic options to revoke a gift are provided: revocation of a gift due to destitution pursuant to Section 2068 et seq. CC and revocation of a gift due to ingratitude pursuant to Section 2072 et seq. CC. In both cases, a justifiable reason for revocation of the respective gift must exist; the reason shall be demonstrated by the donor requesting the return of his gift in the event of a court dispute.
An essential precondition to revoke a gift due to destitution is the donor falling into destitution only after donation. A gift may be revoked due to destitution if the donor lacks the means for his own essential maintenance or the essential maintenance of the person in respect of whom he has the statutory duty to maintain and support. Before revoking a gift due to destitution, the state of destitution should be primarily resolved by other legal means and tools (social benefits provided by the state, state support etc.) and only then, it is possible to revoke the gift. In the event of dispute between the donor and the donee concerning revocation of a gift, the court will consider also whether the donor inflicted the state of destitution upon himself intentionally or through gross negligence.
It is possible to revoke a gift due to ingratitude in the case that the donee hurt the donor intentionally or through gross negligence in a way that was in clear conflict with good morals. The issue of clear conflict with good morals must be always considered based on individual circumstances and intensity of such conflict. Based on the case law of the Supreme Court of the Czech Republic (NS 33 Cdo 358/2003), behavior meeting the signs of conflict with good morals must be always such defective behavior of the donee towards the donor or members of his family which, in terms of its scope and intensity, does not rise any doubts about its being in conflict with good morals. Such requirement can be also met in the case of less serious but repeated actions of the donee which are so bothering that they can be classified as clearly in conflict with good morals. A limitation period of 1 year from the day when the donee hurt the donor, or 1 year from the day on which the donor became aware of the reason for revocation of his gift shall apply in the cases of revocations of gifts due to ingratitude.
Should you be interested in more details please do not hesitate to contact us, we will be glad to assist.