The gift is effective only if the donee acquires the unconditional right to dispose of the funds.
A donor cannot, however, turn what was initially a gift into a loan without the agreement of the donee and Peter certainly never agreed to such a transformation.
The first €3,000 of the taxable value of a taxable gift taken by a donee from any one disponer in a calendar year is exempt from tax.
In this class of cases it has been considered necessary to show that the donor had independent advice, and was removed from the influence of the donee when the gift to him was made.
Leaving aside cases of improper pressure or threats, undue influence may arise where the donee has acquired over the donor a measure of influence or ascendancy of which he takes unfair advantage.
The discretion must be for the purpose for which the donee of power, the repository of power receives the discretion.
The relationship ought to be one based on mutual understanding, and understanding of what a gift may mean, and of the donor's and donee 's vision and needs.
The alternative rule, and still the majority approach, is that a donor who breaks off the engagement for a reason that has nothing to do with the donee 's behavior cannot recover the ring.
It has been contended that even where all those elements are absent the burden in equity is on the donee to show that the donor knew what he was doing and was under no mistake as to the effect of any legal instrument which he may have signed.
The equity of the donee and the estate to be claimed by virtue of it depend on the transaction, that is, on the acts done, and not on the language of the memorandum [which amounted to an imperfect gift].