Question

The Universal Donee is liable for

• A. All the debts and liabilities of the donor at the time of the gift to the extent of the property comprised therein
• B. All the debts and liabilities of the donor undertaken by the donee irrespective of the value of the gift
• C. All the debts of the donor at the time of the gift to the extent of the half of the value of the gift
• D. All the debts and liabilities of the donor at the time of the gift to the extent of the three-fourth of the value of the gift

Hint:

A universal donee steps into the shoes of the donor—but liability is capped by the value of the gifted property.

Answer 1

The Correct Option is A

Step 1: Meaning of Universal Donee.
A universal donee is one who receives the whole property of the donor by way of gift.
Step 2: Liability under Section 128 TPA.
Section 128 of the Transfer of Property Act provides that a universal donee is liable for all debts and liabilities of the donor existing at the time of the gift.
Step 3: Extent of liability.
Such liability is limited only to the extent of the property received by the donee and not beyond it.
Step 4: Conclusion.
Therefore, the correct answer is (A).