Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her considerable assets to Quelita "for safekeeping." If Paca makes this "gift," a court might conclude that it is not effective on the ground that there was no
A) acceptance by the donee.
B) constructive delivery.
C) donative intent.
D) relinquishment of control.

Question

Quizplus · Accepted Answer

Donative intent is the necessary element in a gift. If Paca was mentally incompetent at the time of the transfer, it could be argued that she did not have donative intent and the gift was not valid. Additionally, transferring assets "for safekeeping" to a friend may not constitute a true gift as it suggests that Paca intended to retain some control over the assets. Constructive delivery and relinquishment of control may also be necessary elements for a gift, but without donative intent, the transfer would still not be valid. Acceptance by the donee is not necessary for a gift to be valid.

Paca Is Declared Mentally Incompetent