Termination of the gift contract

A gift contract is an unilaterally binding charity contract. The gift contract can be terminated by agreement or by unilateral termination by the donor. If the object of the gift was immovable property, in order for the form of termination to be valid, the termination must also be done in the form of a notarial record.
Unilateral termination of the gift contract is a possibility, provided that certain circumstances are met that the parties foresee, and which are not contrary to compulsory regulations.
In the case of unilateral termination of the gift contract, the reasons may be the ingratitude of the recipient; impoverishment of the donor; divorce or annulment of marriage and revocation of gifts by a third party.
Ingratitude of the recipient can be one of the reasons for terminating the gift contract. The receiver owes gratitude to the giver for his favor, because he gave him a certain thing free of charge. Ingratitude should be harsh. In practice, as an example of a reason for terminating the gift contract due to ungratefulness, the situation when the recipient commits criminal acts against the recipient is often cited. This ingratitude on the part of the recipient can also be addressed to persons who are close to the donor. After termination of the contract, the recipient is obliged to return the item to the donor. If the recipient of the gift has alienated the object in the meantime, the donor may have the right to claim the monetary equivalent of the object of the gift. The donor’s impoverishment is the lack of the necessary means of living. In order for the gift contract to be terminated for this reason, it is necessary that there be a high level of impoverishment, which calls into question the material existence of the donor and the person he is obliged to support.
In case of a divorce or marriage annulment, a distinction is made between ordinary and other gifts. Ordinary gifts are not refundable since they are smaller gifts made during the marriage, and other gifts of greater value can be returned.
Revocation (“overturning”) of the gift contract by third parties is also possible in case of violation of the rights of third parties, who request its termination. In these situations, third parties can ask that the gift contract not be effective against them because it would violate their obligation. The necessary inheritance part represents half or a third of the legal inheritance part, so the testator (donor) must not dispose of his property in this part in such a way as to violate the right of the necessary heirs that they have under the Law on Inheritance, if it is available, the necessary heirs can seek legal protection of their rights. In addition to the necessary heirs, termination of the gift contract is possible if it violates the rights of third parties, if the creditor cannot realize his claim from the debtor’s property.