Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her 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

​Paca is declared mentally incompetent. Quelita, Paca's friend, insists that Paca transfer her 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.

Quizplus · Accepted Answer

In order for a gift to be effective, the donor must have donative intent, meaning that they intended to give the gift without receiving anything in return. Additionally, the donor must relinquish control over the gift, transferring both legal and physical possession to the donee. In this scenario, if Paca is declared mentally incompetent, there may be questions about whether she had the capacity to have donative intent, and whether she truly understood and intended to transfer her assets to Quelita. Furthermore, if she transfers the assets to Quelita "for safekeeping," she may not be relinquishing control over the assets, as she may still expect Quelita to return them to her or act solely on her instructions. Without both donative intent and relinquishment of control, the gift would not be effective, and a court may decide that the transfer was not valid. Constructive delivery and acceptance by the donee are important elements of gift giving but not as relevant to this scenario.

​Paca Is Declared Mentally Incompetent

Paca Is Declared Mentally Incompetent